When is the Development Fee due 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 is due upon the execution of the Multi-Unit Development (MUD) Agreement. The Development Fee is $19,000 times the number of additional Bambu shoppes to be developed and opened under the MUD Agreement after the first Bambu shoppe.
Notably, $19,000 of the total Development Fee will be applied to the Initial Franchise Fee for each additional shoppe opened. The remaining balance of the Initial Franchise Fee for subsequent shoppes is due upon execution of the Franchise Agreement for that particular shoppe, but no later than the deadline specified in the MUD Agreement for signing the Franchise Agreement related to that shoppe.
This means that a prospective franchisee entering into a multi-unit development agreement with Bambu will need to be prepared to pay the Development Fee upfront when signing the MUD Agreement. This fee secures the rights to develop additional locations. The initial franchise fee for each subsequent location is then partially covered by a credit from the development fee, with the balance due when the individual franchise agreement for that location is signed.