How much advance written notice must a Bambu franchisee provide to Bambu before a proposed transfer?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
antially 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.
- e. The proposed transferee shall have provided information to Bambu sufficient for Bambu to assess the proposed transferee's business experience, aptitude and financial qualification, and Bambu shall have ascertained that the proposed transferee meets such qualifications.
- f. Execution by Franchisee of a general release, in a form satisfactory to Bambu, of any and all claims against Bambu, its affiliates and their respective officers, directors, members, managers, employees and agents.
- g. Payment by Franchisee or the proposed transferee of a transfer fee ("Transfer Fee") in the amount set forth in Attachment I. The Transfer Fee covers the training for up to three representatives of transferee. Bambu reserves the right to charge Franchisee its then current rate for training any additional representatives of 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 provide written notice to Bambu 30 days prior to the proposed effective date of the transfer. This notice must include detailed information that allows Bambu to evaluate the terms and conditions of the proposed transfer, including a written offer from the proposed transferee.
This 30-day notice period allows Bambu to assess the proposed transfer and exercise its right of first refusal, if desired. Bambu evaluates the proposed transferee based on the same criteria used for new franchisees. The 30-day period also runs concurrently with the time Bambu has to approve or disapprove the proposed transferee.
However, the FDD also states that for specific types of transfers, such as those involving partnerships, corporations, or transfers to entities controlled by individuals, the franchisee must provide no less than 30 days' prior written notice to Bambu. This notice must include the proposed transferee's name and address, copies of all agreements related to the transfer, the proposed transferee's application to become a successor franchisee, and any other information reasonably requested by Bambu. This ensures Bambu has ample time to review the proposed transfer and protect its brand standards.
It is important for prospective franchisees to understand these requirements, as failure to comply with the notice provisions could delay or prevent a transfer. Franchisees should maintain open communication with Bambu throughout the transfer process to ensure all necessary information is provided in a timely manner.