Can a Bambu franchisee transfer their franchise rights to a different location without Bambu's 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.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, a franchisee cannot transfer their franchise rights to a different location without prior written approval from Bambu. The rights granted to the franchisee are specific to the initially approved franchised location and protected area. This means a franchisee cannot simply move their Bambu shop to a new site without going through the approval process with Bambu.
This requirement ensures that Bambu maintains control over its brand and the placement of its franchises. Bambu's approval can be withheld for any reason, at Bambu's discretion. This gives Bambu significant authority over where its franchises operate, allowing them to manage market saturation and brand consistency.
If a franchisee wishes to relocate, they must seek written consent from Bambu. If Bambu approves the relocation, the franchisee is obligated to pay a relocation fee as outlined in Attachment I of the franchise agreement. This fee covers the cost of support Bambu provides for the new location, including site visits and additional training. Even during the relocation period, the franchisee is responsible for royalty fees, although Bambu will waive the Marketing and Technology Fee until the new location opens.
This policy is fairly standard in franchising, as franchisors typically want to control where their brand is represented to protect the network. Prospective franchisees should carefully consider the initial location and its potential, as moving later will require franchisor approval and may involve additional costs.