What qualifications must the proposed transferee of a Bambu franchise meet?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
e 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. The Transfer Fee is payable when Franchisee presents the written offer from the proposed transferee to Bambu.
- h. Agreement by Franchisee to abide by the post-termination covenant not to compete set forth in Section 21.2 below.
- i. If so requested by Bambu, Franchisee, at its expense, shall upgrade the shoppe to conform to the then current standards and specifications of new shoppes then-being established pursuant to the Bambū system, and shall complete upgrading and other requirements within the time specified by Bambu.
- j. The transferor shall remain liable for all of the obligations to Bambu in connection with the shoppe that arose prior to the effective date of the transfer, and any covenants that survive the termination or expiration of this Agreement, and shall execute any and all instruments reasonably requested by Bambu to evidence such liability.
- 17.3 Bambu's Approval of Transfer. Bambu has 30 days from the date of the written notice of the proposed transfer to approve or disapprove in writing of Franchisee's proposed transfer. Franchisee acknowledges that the proposed transferee shall be evaluated for approval by Bambu based on the same criteria as is then currently being used to assess new franchisees of Bambu and that such proposed transferee shall be provided, if appropriate, with such pre-transfer disclosures as may be required by state or federal law. Bambu's consent to one transfer shall not constitute consent or approval to any subsequent transfer.
- 17.4 Right of First Refusal. 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.
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 meet several qualifications to be approved. Bambu must receive sufficient information to assess the transferee's business experience, aptitude, and financial qualifications, and then determine that the transferee meets these qualifications. This suggests that Bambu will conduct a thorough review of the transferee's background to ensure they are capable of successfully operating the franchise.
In addition to meeting Bambu's assessment criteria, the proposed transferee must agree to complete the required training program, which can be done either before or after the franchise agreement is assigned. The transferee must also execute a Franchise Agreement, which may have terms that differ substantially from the original agreement, although they will not be required to pay an additional initial franchise fee. The franchisee (the seller) must provide Bambu with written notice of the proposed transfer 30 days in advance, including a written offer from the proposed transferee, to allow Bambu time to evaluate the terms and conditions of the transfer.
Furthermore, the franchisee must ensure that all outstanding payments to Bambu, its affiliates, or third parties with a security interest in the franchised business are settled, and that they are in full compliance with the existing agreement. The franchisee must also execute a general release of any claims against Bambu and its affiliates. The franchisee or the proposed transferee must pay a transfer fee, as outlined in Attachment I, which covers training for up to three representatives of the transferee. Bambu retains the right to charge its current rate for training any additional representatives. Finally, the franchisee must agree to abide by the post-termination covenant not to compete, as detailed in Section 21.2 of the agreement.