What is the Development Fee amount (low and high) for a Bambu franchise?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
| Column 1 | Column 2 | Column 3 | Column 4 | Column 5 | |
|---|---|---|---|---|---|
| Type of Expenditure | Amount (Low) | Amount (High) | Method of Payment | When Due | To Whom Payment Is To Be Made |
| Development Fee (See Notes 1 and 2) | $19,000 | $19,000 | As incurred | Upon execution of the MUD Agreement | Us |
Source: Item 7 — (FDD pages 18–22)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the Development Fee for a Multi-Unit Development Agreement is $19,000, with both the low and high estimates being the same. This fee is incurred upon the execution of the Multi-Unit Development (MUD) Agreement and is paid directly to Bambu.
The Development Fee is calculated by multiplying $19,000 by the number of additional Bambu stores the franchisee commits to developing and opening under the MUD Agreement, beyond their initial store. For example, if a franchisee commits to opening two additional stores, the Development Fee would be $38,000 (2 x $19,000).
It's important to note that $19,000 of the total Development Fee is applied towards the Initial Franchise Fee for each additional store opened. The remaining balance of the Initial Franchise Fee for subsequent stores is due upon signing the individual Franchise Agreement for that store, but no later than the deadline specified in the MUD Agreement. This structure allows franchisees to spread out the initial investment over time as they develop multiple locations.
Prospective franchisees should carefully consider the number of additional stores they commit to developing under the MUD Agreement, as this will directly impact the total Development Fee due upfront. They should also review the terms of the MUD Agreement to understand the deadlines for opening each additional store and the consequences of failing to meet those deadlines.