When does Bambu consider the Development Fee fully earned?
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, the Development Fee is considered fully earned by Bambu upon receipt of the fee. The Development Fee is calculated by multiplying $19,000 by the number of additional shoppes to be developed beyond the first one under the MUD (Multi-Unit Development) Agreement. This fee is in addition to the initial franchise fee for the first shoppe.
This means that once a prospective franchisee pays the Development Fee to Bambu, Bambu has fulfilled its obligation related to that fee. The franchisee acknowledges that this fee is for the grant of development rights and a reserved Development Area.
It is important to note that the Development Fee is nonrefundable, except for a portion that may be credited towards the initial franchise fee for subsequent shoppes. Specifically, $19,000 of the Development Fee is credited to the initial franchise fee for each additional shoppe developed under the MUD Agreement. The initial franchise fee for each additional shoppe is $39,000, and after applying the credit, the remaining balance of $20,000 is due upon execution of the Franchise Agreement for that shoppe, or by the deadline in the Development Schedule.