Does the definition of 'transfer' for a Bambu franchise include transfers in trust?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
The term "transfer" shall also mean and include any change in Franchisee resulting from a divorce, insolvency, corporate or partnership dissolution proceeding, merger, change of control, those transfers described in Section 17.5, by operation of law or, in the event of the death of Franchisee, or an owner of Franchisee by will, declaration of or transfer in trust or under the laws of intestate succession.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to the 2025 Bambu Franchise Disclosure Document, the definition of 'transfer' does include transfers in trust. Specifically, the FDD states that the term 'transfer' includes any change in the franchisee resulting from several circumstances, including transfer in trust.
This means that if a Bambu franchisee transfers their franchise interest into a trust, it is considered a transfer under the franchise agreement. As such, the franchisee would likely need to comply with the transfer provisions outlined in the agreement. These provisions typically require the franchisee to obtain Bambu's consent, meet certain conditions, and potentially pay a transfer fee.
For a prospective Bambu franchisee, this is an important consideration for estate planning purposes. If they plan to transfer their franchise interest to a trust, they should carefully review the transfer provisions in the franchise agreement and discuss the implications with Bambu to ensure compliance and avoid any potential issues.