When is the balance of the initial franchise fee due to Bambu after applying the Development Fee credit?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
ts payment for the grant of the development rights and for a reserved Development Area and Bambu has fully earned the Development Fee upon receipt.
- (b) The initial franchise fee for each such additional shoppe shall be $39,000. Bambu will credit $19,000 of the Development Fee to the initial franchise fee due under the Franchise Agreement for each of the second and subsequent shoppes to be developed under this MUD Agreement. After applying the credit for the portion of the Development Fee as described above, the balance of the initial franchise fee of $20,000 shall be due upon execution of the Franchise Agreement for that shoppe, but no later than the deadline set forth in the Development Schedule (defined in Section 3.1) for signing that Franchise Agreement. Franchisee shall
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, if a franchisee is developing multiple shoppes under a MUD Agreement, a portion of the Development Fee is credited towards the initial franchise fee for the second and subsequent locations. The initial franchise fee for each additional shoppe is $39,000. Bambu will credit $19,000 of the Development Fee to the initial franchise fee.
After this credit is applied, the remaining balance of the initial franchise fee is $20,000. This balance is due upon the execution of the Franchise Agreement for that particular shoppe. However, the payment cannot be made later than the deadline outlined in the Development Schedule for signing the Franchise Agreement.
Therefore, a prospective franchisee needs to be aware of the Development Schedule and ensure timely execution of the Franchise Agreement and payment of the remaining $20,000 to avoid any potential default under the MUD Agreement.