To whom is the Development Fee paid 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 paid to the franchisor, referred to as "Us" in the document. Specifically, this fee is associated with a Multi-Unit Development (MUD) Agreement, where a franchisee commits to opening multiple Bambu locations. The Development Fee is $19,000 per additional shoppe to be developed under the MUD Agreement. This fee is incurred upon the execution of the MUD Agreement.
This means that if a prospective franchisee signs a MUD agreement to open, for example, three additional Bambu locations, they would pay a Development Fee of $57,000 ($19,000 x 3) to Bambu upon signing the agreement. Of this amount, $19,000 per store will be applied to the Initial Franchise Fee for each store. The remaining balance of the Initial Franchise Fee is due upon execution of each individual Franchise Agreement, but no later than the deadline outlined in the MUD Agreement.
It is important for prospective franchisees to understand the terms and conditions of the MUD Agreement, including the payment schedule and obligations for opening additional Bambu locations. This up-front payment to Bambu is non-refundable, so franchisees should carefully consider their ability to fulfill the development schedule before entering into a MUD Agreement. Consulting with a business advisor is recommended to fully understand the financial implications.