Does the definition of 'transfer' for a Bambu franchise include transfers under the laws of intestate succession?
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 Bambu's 2025 Franchise Disclosure Document, the definition of "transfer" includes transfers under the laws of intestate succession. This means that if a Bambu franchisee dies without a will, the franchise rights may be transferred to their heirs according to the laws governing inheritance in their jurisdiction.
This is a significant consideration for prospective franchisees as it dictates how the franchise will be handled in the event of their death. The franchise agreement acknowledges that a transfer can occur due to death, either through a will, declaration of trust, or intestate succession.
However, any such transfer is still subject to Bambu's standard transfer requirements. This typically includes the transferee meeting Bambu's qualifications, completing training, and executing the current franchise agreement. The successor will need to comply with Bambu's requirements to ensure the continued operation of the franchise.
It is important for potential franchisees to understand these transfer provisions and discuss them with their legal and financial advisors to plan for various scenarios, including succession planning for their business.