What is the consequence of paying rent before the Bambu shoppe is open for business?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Once a lease is signed, you will need to obtain permits and begin construction of the shoppe as quickly as possible in order to avoid paying rent before your Bambū shoppe is open for business. This will require, in most instances, retaining an architect and general contractor at or before the lease is signed. You must obtain our prior written consent of your architect and general contractor. We will not withhold our approval of the architectural firm or general contractor provided they can demonstrate they have sufficient expertise in commercial retail design work to ensure that the plans, approvals and permits are obtained and overview of the project is accomplished. If we do not approve your designated architect or general contractor, we may require that you engage an architectural firm or general contractor designated by us.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 22–26)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, franchisees should begin construction of their shoppe as quickly as possible after signing the lease. The primary reason for this urgency is to avoid paying rent before the Bambu location is open and generating revenue. This situation can negatively impact a franchisee's initial investment and cash flow.
To facilitate a swift build-out, Bambu advises franchisees to retain an architect and general contractor either at or before signing the lease. However, franchisees must obtain Bambu's prior written consent for their choice of architect and general contractor. Bambu will grant approval if the professionals demonstrate sufficient expertise in commercial retail design, ensuring the project's plans, approvals, permits, and overall management are effectively handled. If Bambu does not approve the franchisee's selections, they may require the franchisee to engage an architectural firm or general contractor designated by Bambu.
This requirement ensures that the construction and design align with Bambu's standards and specifications, potentially preventing costly errors or delays. While Bambu offers assistance with lease negotiations and provides a style guide for the shoppe's design, the franchisee bears the ultimate responsibility for negotiating the lease terms and managing the build-out process efficiently. Failing to do so could result in unnecessary rental expenses before the business is operational.