Can Bambu withhold approval for transferring a Bambu franchise to a new location, and if so, under what conditions?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
The rights that are granted to Franchisee are for the specific Franchised Location and Protected Area and cannot be transferred to an alternative Franchised Location and Protected Area, or any other location, without the prior written approval of Bambu, which approval may be withheld for any reason, in Bambu's sole discretion.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, a franchisee's rights are specific to the approved Franchised Location and Protected Area. Bambu requires prior written approval before these rights can be transferred to a new location. Bambu has the discretion to withhold this approval for any reason.
This means that a Bambu franchisee cannot simply move their business to a new location without explicit permission from Bambu. This provision allows Bambu to control its brand's presence and avoid cannibalization between franchise locations. It also ensures that any new location meets Bambu's standards and strategic goals.
For a prospective franchisee, this underscores the importance of carefully selecting the initial Franchised Location. If relocation becomes necessary or desirable, the franchisee is at the mercy of Bambu's approval, which may not be granted. This could significantly impact the franchisee's business plans and investment recovery.