When is the Bambu Development Fee due?
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 due concurrently with the execution of the Multi-Unit Development (MUD) Agreement. The Development Fee is calculated as $19,000 multiplied by the number of additional shoppes to be developed, excluding the first shoppe. Bambu considers the Development Fee fully earned upon receipt, as it represents payment for the development rights and a reserved Development Area.
For a prospective Bambu franchisee, this means that when signing an agreement to develop multiple locations, the Development Fee must be paid upfront. This fee is in addition to the initial franchise fee for the first location. A portion of the Development Fee ($19,000 per subsequent shoppe) will be credited towards the initial franchise fee for each additional location, with the remaining balance of $20,000 due upon execution of each Franchise Agreement, but no later than the deadline in the Development Schedule.
It is important to note that the Development Fee is nonrefundable, except for the credit applied to the initial franchise fee for subsequent locations. Franchisees should carefully consider their development plans and financial capabilities before entering into a MUD Agreement with Bambu, as they will not be entitled to a refund of the Development Fee under most circumstances. This is a common practice in multi-unit franchising, as the franchisor incurs costs and sets aside territory based on the development agreement.