If a Bambu franchisee proposes to sell, transfer, or assign their rights, what fee is payable to Bambu?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Agre
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, if a franchisee proposes to sell, transfer, or assign their rights, they must pay Bambu a transfer fee. The amount of this standard transfer fee is determined by the applicable Franchise Agreement executed pursuant to the MUD Agreement. In addition to the standard transfer fee, the franchisee must also pay $7,500 for every undeveloped franchise right for which no Franchise Agreement has been executed.
Before a transfer can occur, the franchisee must provide written notice to Bambu 30 days prior to the proposed effective date of the transfer, including a written offer from the proposed transferee. The proposed transferee must also meet Bambu's qualifications regarding business experience, aptitude, and financial standing. Furthermore, the franchisee must execute a general release of claims against Bambu and agree to abide by the post-termination covenant not to compete.
The transfer fee covers training for up to three representatives of the transferee, but Bambu reserves the right to charge its current rate for training any additional representatives. The transfer fee is payable when the franchisee presents the written offer from the proposed transferee to Bambu. The franchisee may also be required to upgrade the shoppe to meet current standards at their own expense, if requested by Bambu.