What must a Bambu franchisee do before transferring, assigning, or conveying the MUD Agreement?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
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 meet several conditions before transferring their rights under the MUD Agreement. First, the Bambu shoppe must have been open for business and operating for at least 30 days. The franchisee must also obtain written consent from Bambu, indicating that Bambu's approval is required for any transfer of rights or interests related to the agreement.
Additionally, the franchisee must ensure that all outstanding payments due to Bambu, its affiliates, or third parties with a security interest in the franchised business's assets are settled. The franchisee must be in full compliance with the MUD Agreement to proceed with the transfer. The proposed transferee is required to complete the Training Program satisfactorily, which can be done either before or immediately after the assignment of the agreement.
Furthermore, the proposed transferee must execute a new Franchise Agreement, which may have terms substantially different from the original agreement. However, the transferee will not be required to pay an additional initial franchise fee. The franchisee must also provide Bambu with written notice 30 days before the proposed transfer date. This notice should include detailed information about the terms and conditions of the proposed transfer, including a written offer from the proposed transferee, enabling Bambu to evaluate the transfer effectively. These preconditions ensure that any transfer of the MUD Agreement maintains Bambu's standards and protects its interests.