What fee must a Bambu franchisee pay to Bambu in the event of a proposed sale, transfer, or assignment?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
in the Franchise Agreement most recently executed by Bambu and Franchisee, which provisions shall be deemed to be incorporated herein by reference.
- 5.3. Transfer Fee. In the event of any proposed sale, transfer or assignment by Franchisee as described herein, Franchisee or the proposed transferee shall pay to Bambu the standard transfer fee for each franchise to be transferred, as governed by the applicable Franchise Agreement executed pursuant to this MUD Agreement, plus $7,500 for every undeveloped franchise right for which no Franchise Agreement has been executed.
5.4. Bambu Right of First Refusal. In the event of any proposed sale, transfer or assignment of its rights under this MUD Agreement or any interest in it or all or any part of the franchise development rights, or assets directly or indirectly related to the franchise development rights, Franchisee agrees to grant Bambu a 30-day right of first refusal to purchase such rights or assets on the same terms and conditions as are contained in the initial Franchise Agreement executed hereunder.
6. RESTRICTIVE COVENANTS
6.1. Restrictive Covenants.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, a franchisee must pay a transfer fee in the event of a proposed sale, transfer, or assignment. The franchisee or the proposed transferee will pay Bambu the standard transfer fee for each franchise to be transferred, as governed by the applicable Franchise Agreement executed pursuant to the MUD Agreement. Additionally, the franchisee must pay $7,500 for every undeveloped franchise right for which no Franchise Agreement has been executed. The transfer fee covers training for up to three representatives of the transferee, but Bambu reserves the right to charge its current rate for training any additional representatives.
The transfer fee is payable when the franchisee presents the written offer from the proposed transferee to Bambu. Before a transfer can occur, the proposed transferee must provide sufficient information for Bambu to assess their business experience, aptitude, and financial qualifications. The franchisee must also execute a general release of all claims against Bambu and agree to abide by the post-termination covenant not to compete.
Bambu also has a right of first refusal, allowing them to purchase the franchise rights or assets on the same terms and conditions as the initial Franchise Agreement. However, Bambu will waive any transfer fee chargeable to the franchisee and the right of first refusal under specific circumstances related to transfers involving partnerships, business associations, or transfers from an individual to a controlled entity.