What is the condition under which a Bambu franchisee will continue to be responsible for Royalty Fee payments during relocation?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
If you close your existing Bambū shoppe while you are relocating it, you will continue to be responsible for Royalty Fee payments during the closure period, although we will waive the Marketing and Technology Fee until your relocated Bambū shoppe has opened.
Source: Item 12 — (FDD pages 38–40)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, a franchisee is responsible for royalty fee payments during relocation if they close their existing Bambu shoppe. However, Bambu will waive the Marketing and Technology Fee until the relocated shoppe opens.
This means that if a franchisee decides to move their Bambu location, they must continue to pay royalty fees during the period their store is closed for relocation. This could create a financial burden, as the franchisee would be paying fees without generating revenue from sales. The waiver of the Marketing and Technology Fee provides some relief, but the franchisee still needs to account for the ongoing royalty fees during the transition.
Relocation can be a complex process, and it's important for prospective franchisees to understand all the costs involved. The $15,000 relocation fee, combined with the continued royalty fee payments, could significantly impact a franchisee's cash flow during the relocation period. Franchisees should carefully consider these costs and plan accordingly to ensure a smooth transition and avoid financial strain.