Does Bambu have any restrictions on assigning its contract?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement or Multi-Unit Development Agreement | Summary | |
|---|---|---|---|
| (j) | Assignment of contract by franchisor | Section 17.6 of FA; Section 5.1 of MUDA | No restriction on our right to assign. |
| (k) | "Transfer" by franchisee – defined | Section 17.1 of FA; Section 5.2 of MUDA | Includes transfer of franchise agreement or shoppe, any change in ownership of franchisee entity, or the transfer of the assets of the shoppe. |
| (l) | Franchisor approval of transfer by franchisee | Sections 17.3 and 17.8 of FA; Section 5.2 of MUDA | We have the right to approve all transfers, we may not unreasonably withhold our consent. We have the right to approve any public or private offering. |
Source: Item 17 — (FDD pages 44–46)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu, as the franchisor, has no restrictions on assigning its contract. This is in contrast to the franchisee, whose ability to transfer the franchise agreement or shoppe is defined as a "transfer" and is subject to Bambu's approval.
Specifically, Item 17 outlines various provisions related to the franchise agreement and multi-unit development agreement, including assignment of the contract. While Bambu is not restricted from assigning the contract, a franchisee needs franchisor approval for any transfer. This approval is not unreasonably withheld by Bambu.
This means that Bambu can freely transfer its rights and obligations under the franchise agreement to another party without needing the franchisee's consent. However, if a franchisee wishes to sell their Bambu business or transfer the franchise to someone else, they must obtain approval from Bambu, which will assess the transferee's qualifications, ensure all outstanding amounts are paid, and may require the transferee to complete training and sign the current franchise agreement. This is a fairly standard practice in franchising, allowing the franchisor to maintain control over who operates their branded locations.