How long does Bambu have for its right of first refusal to purchase a Bambu franchise?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee grants to Bambu a 30-day right of first refusal to purchase such rights, interest or assets on the same terms and conditions as are contained in the written notice set forth in Section 17.2.d; provided, however, the following additional terms and conditions shall apply:
a. the right of first refusal will be effective for each proposed transfer and any material change in the terms or conditions of the proposed transfer shall be deemed a separate offer on which Bambu shall have a new 30-day right of first refusal;
b. the 30-day right of first refusal period will run concurrently with the period in which Bambu has to approve or disapprove the proposed transferee; and
c. if the consideration or manner of payment offered by a proposed transferee is such that Bambu may not reasonably be required to furnish the same, then Bambu may purchase the interest which is proposed to be sold for the reasonable cash equivalent.
If the parties cannot agree within a reasonable time on the cash consideration, such fair market value will be determined by three independent appraisers who collectively will conduct one appraisal.
Bambu will appoint one appraiser, Franchisee will appoint one appraiser and those appraisers will appoint the third appraiser.
Bambu and Franchisee will select their respective appraisers within 15 days after Bambu notifies Franchisee that Bambu is exercising the right of first refusal under this Section 17.4.
The two appraisers will appoint the third appraiser within 15 days after the date on which the last of the appointed appraisers is appointed.
Bambu and Franchisee will each bear the cost of their own appraiser and share equally the fees and expenses of the third appraiser.
Bambu and Franchisee will instruct the three appraisers to complete the appraisal within 30 days after the third
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu has a 30-day right of first refusal if a franchisee proposes to transfer their franchise rights, interest, or assets. This means that if a franchisee decides to sell their Bambu franchise, they must first offer Bambu the opportunity to purchase it on the same terms and conditions as the proposed sale.
The 30-day period for Bambu's right of first refusal runs concurrently with the time Bambu has to approve or disapprove the proposed transferee. Any material change in the terms of the proposed transfer is considered a separate offer, which would then give Bambu a new 30-day right of first refusal. This ensures that Bambu has the opportunity to reassess the transfer if the terms change.
If the consideration for the transfer is not something Bambu can reasonably match (e.g., non-cash assets), Bambu can purchase the franchise interest for a reasonable cash equivalent. If Bambu and the franchisee cannot agree on the cash equivalent, they will each appoint an appraiser, and those two appraisers will appoint a third to determine the fair market value. Bambu and the franchisee each pay for their own appraiser, and they split the cost of the third appraiser. This appraisal must be completed within 30 days of the third appraiser's appointment. If Bambu decides not to exercise its right of first refusal, the franchisee can proceed with the transfer, provided they comply with all other applicable requirements.