What is the 'Additional Amount Due for Initial Franchise Fee' for a Bambu franchise?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
| Column 1 | Column 2 | Column 3 | Column 4 | Column 5 | |
|---|---|---|---|---|---|
| Type of Expenditure | Amount (Low) | Amount (High) | Method of Payment | When Due | To Whom Payment Is To Be Made |
| Development Fee (See Notes 1 and 2) | $19,000 | $19,000 | As incurred | Upon execution of the MUD Agreement | Us |
| Additional Amount | $20,000 | $20,000 | As Incurred | Upon execution | Us |
| Due for Initial | of the | ||||
| Franchise Fee | Franchise | ||||
| (See Notes 1 and 2) | Agreement | ||||
| Estimated Initial Investment Expenses Noted in Chart A Minus the Initial Franchise Fee noted in Chart A | $110,000 | $279,000 | See Chart A | See Chart A | Various – See Chart A |
| TOTAL | $149,000 | $318,000 | |||
| ESTIMATED | |||||
| INITIAL | |||||
| INVESTMENT | |||||
| (See Notes 3 and 4) |
Source: Item 7 — (FDD pages 18–22)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the additional amount due for the initial franchise fee is $20,000. This amount is incurred upon the execution of the Franchise Agreement and is payable to Bambu. This is in addition to the Development Fee of $19,000 paid upon execution of the Multi-Unit Development Agreement.
For franchisees entering into a Multi-Unit Development Agreement (MUD Agreement), the initial franchise fee for each Bambu location is $39,000. When signing the MUD Agreement, a development fee of $19,000 per additional location is due. Bambu applies $19,000 of this development fee towards the initial franchise fee for each additional location. The remaining balance of the initial franchise fee, which is $20,000, is due upon signing the Franchise Agreement for each subsequent location, but must be paid by the deadline outlined in the MUD Agreement.
Prospective franchisees should note that this additional amount is part of the overall initial investment, which ranges from $149,000 to $318,000. This total includes various expenses such as the development fee, leasehold improvements, equipment, and initial marketing campaigns. It is important for potential franchisees to carefully review all the estimated costs and payment terms with a business advisor before making a decision.
Understanding the payment schedule and the amounts due at each stage of the agreement is crucial for managing the initial investment effectively. The additional amount due for the initial franchise fee represents a significant portion of the total investment and must be factored into the franchisee's financial planning.