When is the Cost of Product Testing due for a Bambu franchise?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
epartment. See Item 11. |
| Column 1 | Column 2 | Column 3 | Column 4 |
|---|---|---|---|
| Type of Fee 1 | Amount | Due Date | Remarks |
| Other at Shoppe Location Trainings and Certifications 1, 2 | Our then current published rates which are currently $900 per day plus travel related expenses | As incurred | Payable only if you request or we require additional training specific to you. |
| Costs and Attorneys' Fees 2 | Will vary depending on nature of your default or the claim brought | As incurred | Payable if we are successful in a legal action. |
| Indemnification Under Franchise Agreement 2 | Will vary depending on nature of the claim against us | As incurred | You have to reimburse us if we are held liable for claims resulting from your Bambū shoppe operations. |
| Insurance Premiums 2, 5 | Will vary depending on your location, policy limits, and insurer | As incurred | If you do not pay your premiums, although we do not have to, we can pay them for you and you must reimburse us. |
| Cost of Product Testing | Hourly rate of $150 per person plus the cost of supplies and equipment | As incurred | You must reimburse us for all reasonable costs we incur in investigating and determining whether any previously unapproved products, programs, or suppliers you desire to use meet our standards and specifications. |
| and Supplier | |||
| Approval 1 , 2 | |||
| Relocation Fee 1, 2 | $15,000 | When we approve the new location lease | Payable only if you move your current location during the term of the Franchise Agreement. The fee provides for similar new Bambū shoppe operations support, including two site visits and three days of additional training support as determined by us. If you clos |
Source: Item 6 — OTHER FEES (FDD pages 14–18)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the Cost of Product Testing is due 'As incurred'. This means that the franchisee must pay this fee at the time the cost is incurred by Bambu.
The cost covers reimbursement for all reasonable expenses Bambu incurs when investigating and determining if a potential new product, program, or supplier meets their standards. This includes an hourly rate of $150 per person, plus the cost of supplies and equipment used during the testing process.
For a prospective Bambu franchisee, this means that if they wish to introduce a new product, program, or supplier not already approved by Bambu, they will be responsible for covering the costs of this evaluation. The amount will depend on the extent of testing required and the resources utilized by Bambu to conduct the evaluation.