What expenses, beyond fees, is a Bambu franchisee responsible for if Bambu provides development assistance?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.4. Site Selection. Franchisee shall not, without the prior written approval of Bambu, enter into any contract for the purchase or lease of any premises for use as a Bambū shoppe. Bambu will assist Franchisee in the selection and approval of locations for its shoppes in accordance with the terms and conditions of the Franchise Agreements. Franchisee acknowledges that Bambu has no obligation to select or acquire a location on behalf of Franchisee.
- 3.4. Training Program. Franchisee acknowledges that Bambu shall have the right, at Bambu's sole discretion, to waive the initial training program, which is the same as or similar to the training provided under Section 6.1 of the Franchise Agreement executed concurrently herewith, for the second and each subsequent shoppe developed under the terms of this MUD Agreement. Franchisee may also request additional assistance from Bambu in connection with site selection, site feasibility studies, lease negotiations and other issues related to development of its Development Area. In the event that Bambu agrees to provide such assistance, in Bambu's sole discretion, Franchisee agrees to pay all fees associated with such assistance, together with all travel, lodging, living expenses, telephone charges and other identifiable expenses incurred in connection with such assistance, plus a fee based on daily or hourly time spent by any of Bambu's employees in connection with such assistance.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, if Bambu agrees to provide assistance with site selection, site feasibility studies, lease negotiations, or other development-related issues, the franchisee is responsible for specific expenses beyond the fees paid for the assistance itself. These expenses include all travel, lodging, and living expenses incurred during the assistance period.
Additionally, the franchisee must cover telephone charges and other identifiable expenses that arise in connection with the assistance provided by Bambu. On top of these direct costs, the franchisee is also responsible for paying a fee based on the daily or hourly time spent by any of Bambu's employees who are involved in providing the development assistance.
In summary, while Bambu may offer support in various aspects of development, the franchisee should be prepared to cover not only the direct fees for this assistance but also all associated travel, accommodation, communication, and personnel time costs. This could potentially add a significant financial burden on top of the initial franchise and development fees.