Under what circumstances will Bambu waive the transfer fee for a Bambu franchise transfer?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
With respect to a proposed transfer as described in subsection (1) and (3) of this Section, Bambu will waive any transfer fee chargeable to Franchisee for a transfer and the right of first refusal set forth in Section 17.4 under these circumstances.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu will waive the transfer fee under specific conditions related to certain types of transfers. Specifically, if the franchisee is a partnership or other business association, Bambu will waive the transfer fee for the addition or deletion of a partner or members of the association, or the transfer of any partnership or membership among existing partners or members.
Additionally, if the franchisee is an individual, Bambu will waive the transfer fee for a transfer from the individual to a corporation or other entity controlled by them. However, this waiver is conditional. Bambu's approval is contingent upon the individual's continuing personal guarantee for the performance of obligations under the Franchise Agreement. It also requires a limitation on the corporation's or other entity's business activity to operating the Bambu shoppe and related activities, as well as other reasonable conditions.
Bambu also retains the right of first refusal in these transfer scenarios, as detailed in Section 17.4 of the agreement. This means that even if the franchisee meets the conditions for a transfer fee waiver, Bambu has the option to purchase the franchise on the same terms and conditions as the proposed transfer. This clause ensures that Bambu maintains control over who becomes a franchisee and under what conditions.