When transferring a Bambu franchise, must the franchisee agree to abide by the post-termination covenant not to compete?

According to Bambu's 2025 Franchise Disclosure Document, a franchisee who is transferring their franchise must agree to abide by the post-termination covenant not to compete. This requirement is part of the conditions that Bambu sets for approving the transfer of a franchise.

This means that as part of the transfer process, the franchisee must commit to not competing with Bambu after the franchise agreement ends. This likely involves restrictions on operating a similar business within a certain radius of a Bambu location for a specified period.

For a prospective franchisee, this condition highlights the importance of understanding the terms of the post-termination covenant not to compete before seeking to transfer the franchise. It ensures that Bambu can protect its brand and market presence even when a franchise changes hands.