Besides the Development Fee, what other fee is Bambu entitled to for the first shoppe?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
o any agreement with respect to the Marks or Bambū system.
2. INITIAL FRANCHISE AND DEVELOPMENT FEES
2.1. Fees.
- (a) In consideration of the development rights granted herein, concurrently with the execution of this MUD Agreement Franchisee will pay to Bambu a development fee equal to $19,000 multiplied by the number of additional shoppes, beyond the first shoppe, to be developed hereunder ("Development Fee"). This Development Fee is in addition to the initial franchise fee applicable for the first shoppe to be developed hereunder, which must be paid in accordance with the terms of the Franchise Agreement for that shoppe. The total Development Fee is set forth in the Addendum. Franchisee acknowledges that the Development Fee represents 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 also be required to pay the Training Fee set forth under each Franchise Agreement in such manner and time as set forth in each Franchise Agreement.
- (c) Other than to have applied the portions of the Development Fee to a portion of the initial franchise fee for subsequent Franchise Agreements as described in Section 2.1(b), all fees hereunder are nonrefundable once paid to
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, in addition to the Development Fee, a franchisee must pay an initial franchise fee for the first shoppe. The Development Fee is multiplied by the number of additional shoppes beyond the first one. This fee compensates Bambu for granting development rights and reserving a Development Area. Bambu considers the Development Fee fully earned upon receipt.
For each additional shoppe, the initial franchise fee is $39,000. A credit of $19,000 from the Development Fee is applied to the initial franchise fee for the second and subsequent shoppes. The remaining balance of $20,000 for the initial franchise fee is due upon execution of the Franchise Agreement for that shoppe, or by the deadline in the Development Schedule. Franchisees must also pay a Training Fee as outlined in each Franchise Agreement.
It is important to note that all fees paid to Bambu are nonrefundable, except for the application of portions of the Development Fee to the initial franchise fee for subsequent Franchise Agreements. Franchisees are not entitled to any refunds, returns, or rebates of initial franchise fees once paid, unless specifically stated otherwise in the agreement.