Must a Bambu franchisee be in full compliance with the Franchise Agreement to transfer their rights?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
- 17.2 Pre-Conditions to Franchisee's Transfer.
Franchisee shall not transfer its rights under this Agreement or any interest in it, or any part or portion of any business entity that owns it or all or a substantial portion of the assets of the Bambū shoppe, unless: (1) the shoppe has already opened for business and has been operating for at least 30 days; and (2) Franchisee obtains Bambu's written consent and complies with all of the following requirements:
- a.
Payment of all amounts due and owing pursuant to this Agreement by Franchisee to Bambu or its affiliates or to third parties holding a security interest in any asset of the franchised business and Franchisee is otherwise in full compliance with this Agreement.
- b.
Agreement by the proposed transferee to satisfactorily complete the Training Program described in this Agreement, which training may be completed by the transferee either prior to or immediately after assignment of this Agreement.
- c.
Execution of a Franchise Agreement (for the same type of franchise as granted by this Agreement or an equivalent type then offered as determined by Bambu) and any ancillary documents, such as the Guaranty and Assumption of Franchisee's Obligations and Nondisclosure and Noncompetition Agreement, in a form then currently offered and required by Bambu, which shall supersede this Agreement in all respects.
If a new Franchise Agreement is signed, the terms thereof may differ substantially from the terms of this Agreement; provided, however, the transferee will not be required to pay any additional initial franchise fee.
- d.
Provision by Franchisee of written notice to Bambu 30 days prior to the proposed effective date of the transfer, such notice to contain information reasonably detailed to enable Bambu to evaluate the terms and conditions of the proposed transfer, an which at a minimum includes a written offer from the proposed transferee.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, a franchisee must be in full compliance with the Franchise Agreement to transfer their rights. Specifically, the franchisee must have already opened their shoppe for business and operated it for at least 30 days. Additionally, the franchisee needs to obtain written consent from Bambu and meet several requirements.
One of the key preconditions for transferring a Bambu franchise is that the franchisee must have paid all amounts due to Bambu, its affiliates, or third parties holding a security interest in the franchised business. Furthermore, the franchisee must be in full compliance with all other aspects of the Franchise Agreement. This ensures that the franchisee has met their financial and operational obligations before transferring the franchise to someone else.
In addition to financial compliance, the proposed transferee must also agree to complete Bambu's training program satisfactorily. They must also execute a Franchise Agreement, which may have different terms than the original agreement, and provide Bambu with 30 days' written notice prior to the proposed transfer date. This notice must include detailed information about the proposed transfer, including a written offer from the potential transferee. These conditions ensure that any new franchisee is well-prepared and meets Bambu's standards.