Does the Franchisee need Bambu's written consent to assign the agreement?
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, franchisees are required to obtain written consent from Bambu before transferring, assigning, or conveying their MUD Agreement or any interest within it. This requirement is in place because the rights granted in the agreement are personal to the franchisee. However, Bambu'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; these provisions are incorporated by reference into the MUD Agreement.
Bambu retains the right to require that any potential transferee sign the then-current form of the MUD Agreement, which may include materially different terms and conditions negotiated based on the specific circumstances of the transfer. Franchisees are explicitly prohibited from granting subfranchises under the MUD Agreement. The term "transfer" is defined according to the Franchise Agreement most recently signed by Bambu and the franchisee, and the conditions for Bambu's approval of any transfer will mirror those in the Franchise Agreement.
In the event of a proposed transfer, the franchisee or the proposed transferee must pay Bambu a standard transfer fee for each franchise being transferred, as specified in the applicable Franchise Agreement. Additionally, a fee of $7,500 is required for every undeveloped franchise right for which no Franchise Agreement has been executed. Bambu also retains a right of first refusal, giving them the option to purchase the rights or assets on the same terms and conditions as the initial Franchise Agreement.