What is the Development Fee for Bambu, and how is it calculated?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
ight to open more than two additional Bambū shoppes under the MUD Agreement.
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- The Initial Franchise Fee for each Bambū shoppe to be opened under the MUD Agreement is $39,000. At the time you sign the MUD Agreement, you will pay a Development Fee of $19,000 times the number of additional Bambū shoppes to be developed and opened under the MUD Agreement after your first Bambū shoppe. We will apply $19,000 of the total amount of the Development Fee to the Initial Franchise Fee for each additional shoppe you open. The remainder of the Initial Franchise Fee due for the second and subsequent Bambū shoppe is due upon execution of the Franchise Agreement for that shoppe, but no later than the deadline set forth i
Source: Item 7 — (FDD pages 18–22)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the Development Fee is $19,000 per additional shoppe. This fee is applicable when a franchisee enters into a Multi-Unit Development (MUD) Agreement to develop and open more than one Bambu location. The Development Fee is calculated by multiplying $19,000 by the number of additional shoppes the franchisee commits to developing under the MUD Agreement, beyond their initial Bambu location. This fee is paid upon execution of the MUD Agreement.
Of the total Development Fee paid, $19,000 will be applied towards the Initial Franchise Fee for each additional Bambu shoppe opened under the MUD Agreement. The remaining balance of the Initial Franchise Fee for each subsequent shoppe is due upon signing the individual Franchise Agreement for that location, but must be paid no later than the deadline specified in the MUD Agreement for signing the Franchise Agreement related to that shoppe.
For a prospective Bambu franchisee, this means that if they commit to opening, for example, two additional shoppes under a MUD Agreement, the Development Fee would be $38,000 (2 x $19,000). This fee is in addition to the initial investment required for the first Bambu shoppe. It's important to note that the Development Fee is non-refundable, so franchisees should carefully consider their ability to develop the agreed-upon number of locations before entering into a MUD Agreement. The FDD also indicates that the opening of each additional Bambu shoppe typically occurs between six and twelve months after the opening of the most recently opened prior shoppe.