When are Costs and Attorneys' Fees due to Bambu?
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, Costs and Attorneys' Fees are due to Bambu as incurred. This means that the franchisee is responsible for paying these fees at the time they arise.
The amount of these fees will vary depending on the nature of the franchisee's default or the claim brought against them. These fees are payable only if Bambu is successful in a legal action against the franchisee. This could include expenses related to court costs, attorney retainers, hourly fees, and other legal expenses.
This arrangement is typical in franchising, as it ensures that Bambu can recover legal costs in situations where a franchisee is in breach of the franchise agreement and legal action is necessary. Prospective franchisees should be aware of this potential expense and ensure they operate their Bambu shop in compliance with the franchise agreement to minimize the risk of incurring such fees.