Is the proposed transferee of a Bambu franchise required to complete a training program?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
ird 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.
- 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.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, a proposed transferee must satisfactorily complete the Training Program. This training can be completed either before or immediately after the assignment of the Franchise Agreement.
This requirement ensures that the new franchisee is properly trained in the Bambu system. The initial franchisee must also pay all outstanding amounts owed to Bambu and be in full compliance with the Franchise Agreement before the transfer can proceed. The transferee must also execute a new Franchise Agreement and related documents, which will supersede the original agreement and may have substantially different terms. However, the transferee will not be required to pay an additional initial franchise fee.
Furthermore, the transfer is contingent on Bambu's approval, which is based on criteria similar to those used for new franchisees. The proposed transferee's business experience, aptitude, and financial qualifications will be assessed. The transfer fee covers training for up to three representatives of the transferee, with additional representatives incurring further training costs at Bambu's current rate. This transfer fee is payable when the franchisee presents the written offer from the proposed transferee to Bambu.