Can the franchise rights granted to a Bambu Franchisee be transferred to an alternative location without approval?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.3 Limitation on Franchise Rights.
The rights that are granted to Franchisee are for the specific Franchised Location and Protected Area and cannot be transferred to an alternative Franchised Location and Protected Area, or any other location, without the prior written approval of Bambu, which approval may be withheld for any reason, in Bambu's sole discretion.
Franchisee shall not operate another shoppe, offer products or services which are part of the Bambū system at any site other than the Franchised Location, fill wholesale orders, sell products or services by mail order or through catalogs or the Internet, offer products or services at temporary venues, transship or reship products, or offer any other type of off-site service or sale of products.
Franchisee may offer catering or utility third party app delivery or other online delivery programs only in compliance with Bambu's standards and specifications for offering such programs.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the rights granted to a franchisee are specific to the approved franchised location and protected area. A Bambu franchisee cannot transfer these rights to an alternative location or any other location without obtaining prior written approval from Bambu. This approval can be withheld at Bambu's discretion for any reason.
This restriction means that if a Bambu franchisee wishes to move their shoppe to a new location, they must first seek and receive approval from Bambu. This requirement allows Bambu to maintain control over its brand and ensure that new locations align with its strategic objectives. It also prevents franchisees from moving to locations that might negatively impact other franchisees or conflict with Bambu's overall market strategy.
Bambu also stipulates that a franchisee shall not operate another shoppe or offer products/services of the Bambu system at any site other than the Franchised Location. They also cannot fill wholesale orders, sell products/services by mail order, catalogs, or the Internet, offer products/services at temporary venues, transship/reship products, or offer any other type of off-site service or sale of products. The franchisee may offer catering or utilize third-party app delivery or other online delivery programs only if they comply with Bambu's standards and specifications.
This policy is typical in franchising, as franchisors want to carefully manage their brand's presence and avoid cannibalization between franchise units. A prospective Bambu franchisee should carefully consider this restriction and discuss potential relocation scenarios with Bambu before signing the franchise agreement.