Is there a transfer fee required for a Bambu franchise transfer?

According to Bambu's 2025 Franchise Disclosure Document, a transfer fee is required for franchise transfers. Specifically, Item 23 outlines the conditions for a franchisee to transfer their rights, which includes the payment of a transfer fee as detailed in Attachment I. This fee is payable when the franchisee presents a written offer from the proposed transferee to Bambu. The transfer fee covers training for up to three representatives of the transferee; additional representatives may incur further training costs at Bambu's current rates.

Before a transfer can occur, the franchisee must meet several preconditions, including being current on all payments to Bambu and its affiliates, ensuring the transferee completes the required training program, and securing the execution of a new Franchise Agreement. The terms of this new agreement may differ significantly from the original. Additionally, the franchisee must provide Bambu with 30 days' written notice containing detailed information about the proposed transfer and the transferee's qualifications.

Bambu also evaluates the proposed transferee based on the same criteria used for new franchisees. The franchisor has 30 days from the date of the written notice to either approve or disapprove the proposed transfer. Furthermore, the franchisee must execute a general release of claims against Bambu and adhere to post-termination non-compete covenants. Bambu retains the right to request that the shoppe be upgraded to current standards at the franchisee's expense before the transfer is finalized.

Notably, Bambu may waive the transfer fee and right of first refusal under specific circumstances, such as transfers involving partnerships or corporations where ownership interests change, or transfers from an individual to an entity they control, subject to certain conditions like maintaining a personal guarantee. This waiver does not apply to all transfer scenarios, so franchisees should carefully review the conditions and consult with Bambu to determine the applicable fees and requirements for their specific situation.