Is a Bambu franchisee allowed to transfer, assign, or convey the MUD Agreement without Bambu's consent?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
eement at any time upon notice to Franchisee, provided that Bambu has fulfilled its obligations hereunder or has made adequate provisions therefor.
- 5.2. Assignment by Franchisee. Because the rights granted herein are personal to Franchisee, Franchisee shall not transfer, assign or convey this MUD Agreement or any interest hereunder without Bambu's prior written consent which consent shall not be unreasonably withheld if Franchisee complies with the transfer provisions of the Franchise Agreement most recently executed by Bambu and Franchisee, which provisions shall be deemed to be incorporated herein by reference. Bambu reserves the right to require the transferee to sign the then-current form of MUD Agreement with materially different terms and conditions that may be negotiated between the parties depending on the circumstances of the transfer. Franchisee is prohibited from granting a subfranchise hereunder. As used in this MUD Agreement, the term "transfer" shall have the meaning set forth in the Franchise Agreement most recently signed by Bambu and Franchisee. In addition to any conditions contained in this MUD Agreement, the conditions for Bambu's approval of any transfer shall be the same as the conditions contained 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 firs
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, a franchisee is restricted from transferring, assigning, or conveying the MUD (Multi-Unit Development) Agreement without prior written consent from Bambu. This requirement is in place because the rights granted to the franchisee are considered personal.
The franchisor's consent will not be unreasonably withheld if the franchisee complies with the transfer provisions outlined in the most recently executed Franchise Agreement between Bambu and the franchisee. However, Bambu retains the right to require the transferee to sign the then-current form of MUD Agreement, which may contain materially different terms and conditions negotiated based on the transfer's specific circumstances. The franchisee is also explicitly prohibited from granting a subfranchise under the MUD Agreement.
In the event of a proposed sale, transfer, or assignment by the franchisee, they or the proposed transferee must pay Bambu the standard transfer fee for each franchise to be transferred, as specified in the applicable Franchise Agreement, along with $7,500 for every undeveloped franchise right for which no Franchise Agreement has been executed. Additionally, Bambu has a right of first refusal to purchase the rights or assets on the same terms and conditions as the initial Franchise Agreement.
These provisions ensure that Bambu maintains control over who operates and develops franchises under its brand, safeguarding the brand's integrity and consistency. Prospective franchisees should carefully review the transfer provisions in the Franchise Agreement to understand the specific conditions and potential costs associated with transferring their rights.