Besides the Development Fee, what additional amount is due to Bambu upon execution of the Multi-Unit Development Agreement?
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 |
Source: Item 7 — (FDD pages 18–22)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, in addition to the Development Fee, an 'Additional Amount' of $20,000 is due to Bambu upon the execution of the Multi-Unit Development Agreement. The Development Fee itself is $19,000 multiplied by the number of additional Bambu shoppes to be developed under the agreement, which is paid when signing the Multi-Unit Development Agreement.
This additional $20,000 is listed separately from the Development Fee. The FDD specifies that this amount is 'due for Initial Franchise Fee'. This suggests it is a partial payment towards the full initial franchise fee for each additional location.
Prospective franchisees should note that this $20,000 is non-refundable, like most fees in the franchise agreement. It's crucial to factor this into your initial investment calculations when considering a multi-unit development plan with Bambu.