Is the proposed transferee of a Bambu franchise required to execute a new Franchise Agreement?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
m 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.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, a proposed transferee is required to execute a new Franchise Agreement. The new agreement must be for the same type of franchise as the original or an equivalent type then offered by Bambu. This new agreement and any ancillary documents will supersede the original agreement in all respects.
The FDD states that the terms of the new Franchise Agreement may differ substantially from the original agreement. However, the transferee will not be required to pay an additional initial franchise fee.
Before a transfer can occur, the franchisee must provide written notice to Bambu 30 days prior to the proposed effective date of the transfer. This notice must include detailed information to allow Bambu to evaluate the terms and conditions of the proposed transfer, including a written offer from the proposed transferee. The proposed transferee must also complete the Training Program, which can be done before or after the assignment of the agreement.