Is the transferee charged an initial franchise fee when a Bambu franchise is transferred?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
ent used in the shoppe. |
| Column 1 | Column 2 | Column 3 | Column 4 |
|---|---|---|---|
| Type of Fee 1 | Amount | Due Date | Remarks |
| Transfer Fee 1, 2 | $15,000 If you transfer rights under a MUD Agreement, you also pay a $7,500 transfer fee for each undeveloped franchise right | Payable when you present the written offer from the proposed transferee to us | The Transfer Fee applies to a transfer of the Franchise Agreement, MUD Agreement, interest in the shoppe, or the franchise is transferred by you. The transferee is charged no Initial Franchise Fee. We will provide training for three representatives of a transfe |
Source: Item 6 — OTHER FEES (FDD pages 14–18)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, a transferee is not charged an initial franchise fee. Instead, the transferor must pay a $15,000 transfer fee when transferring the Franchise Agreement, MUD Agreement, or interest in the shoppe. If the transfer involves rights under a MUD Agreement, the transferor also pays $7,500 for each undeveloped franchise right. Bambu will provide training for up to three representatives of the transferee at no additional charge.
This is a notable benefit for someone looking to buy an existing Bambu franchise, as they avoid the initial franchise fee typically required for new franchisees. The transfer fee covers Bambu's administrative costs and the expense of training the new owner and their team. The fee structure incentivizes the transferor (the seller) to ensure a smooth transition, as they bear the cost.
It is important to note that the transfer fee is separate from other potential costs associated with taking over a Bambu franchise. The transferee may still need to invest in upgrades, remodeling, or new equipment to meet Bambu's current standards. Additionally, the transferee will be responsible for ongoing fees such as the Royalty Fee, which is based on a percentage of net revenues. Prospective transferees should carefully review the Franchise Agreement and discuss all potential costs with Bambu to fully understand the financial implications of the transfer.