What is the Development Fee for a Multi-Unit Development Agreement with Bambu, and how is it calculated?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
cribed below.
Multi-Unit Development Agreement
If you enter into a MUD Agreement, you will sign that agreement together with the Franchise Agreement for your first Bambū shoppe. You will pay the Initial Franchise Fee for the first Bambū shoppe in accordance with the terms of the Franchise Agreement, as described above, and under the MUD Agreement, you will also pay a development fee equal to $19,000 times the number of additional shoppes to be developed under the MUD Agreement (the "Development Fee").
The Initial Franchise Fee for the second and each subsequent Bambū shoppe to be opened under the MUD Agreement will be $39,000. The $19,000 portion of the Development Fee paid for each of the second and subsequent Bambū shoppes to be developed
Source: Item 5 — (FDD pages 13–14)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, if a franchisee enters into a Multi-Unit Development (MUD) Agreement, they must pay a development fee in addition to the initial franchise fee for their first Bambu location. The development fee is calculated as $19,000 multiplied by the number of additional shops to be developed under the MUD Agreement.
For each subsequent Bambu shop opened under the MUD Agreement, the initial franchise fee is $39,000. A portion of the development fee, specifically $19,000 for each shop, is credited toward this initial franchise fee. The remaining balance of the initial franchise fee ($20,000) is due upon execution of the Franchise Agreement for that particular shop, but no later than the deadline outlined in the Development Schedule.
This means that while the initial investment is higher with a MUD agreement due to the Development Fee, a portion of that fee is later applied to reduce the franchise fees for each subsequent location. This structure incentivizes multi-unit development while ensuring Bambu receives compensation for granting development rights and reserving a specific territory for the franchisee.