When is the Development Fee due to Bambu for each franchise opened under the Multi-Unit Development Agreement?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
t 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, when a franchisee enters into a Multi-Unit Development Agreement (MUD Agreement), they must pay a Development Fee. This fee is $19,000 multiplied by the number of additional Bambu shoppes the franchisee commits to develop and open beyond their initial location. This Development Fee is due upon execution of the MUD Agreement.
For each additional Bambu shoppe opened under the MUD Agreement, $19,000 of the Development Fee is applied towards the Initial Franchise Fee. The remaining balance of the Initial Franchise Fee for each subsequent shoppe is due when the Franchise Agreement for that location is signed, but no later than the deadline specified in the MUD Agreement for signing the Franchise Agreement.
In practical terms, a prospective Bambu franchisee should be prepared to pay the Development Fee upfront when signing the MUD Agreement. This fee secures the rights to develop additional locations. The franchisee should also factor in the remaining Initial Franchise Fee for each location, which is due as each individual Franchise Agreement is executed. This payment schedule is important for financial planning and ensuring sufficient capital is available as the franchisee expands their Bambu business.