What factors can affect the costs of starting a Bambu shoppe?

Your costs depend on factors such as: how much you follow our methods and procedures; your management skill, experience and business acumen; local economic conditions; the local market for our products and programs; the prevailing wage rate; competition; and the sales level reached during this initial period.

Note 2: Leasehold Improvements. Your cost to build-out a location for a Bambū shoppe will vary greatly. The square footage of the location, the as-is condition, tenant improvement allowances from the landlord, and the type and availability of utilities and services are typically the largest monetary items affecting your shoppe buildout. A second-generation restaurant or QSR location with an existing kitchen and plumbing will significantly reduce these costs depending on final layout. Bambū shoppes are divided into two distinct areas, the kitchen area and the front of the house, also called the customer service and seating area. The kitchen area, bathrooms and the storage and maintenance area, which in total typically requires approximately 400-500 sq. ft. of space, is the most expensive to build out. The front of the house can be almost any size but having 500-600 sq. ft. for seating and front counter is typically sufficient. In the situation where there is an existing kitchen there is usually no tenant improvement allowance from the landlord. In space that is commonly called Vanilla Shell or Gray Shell, the cost of to build out the space is much greater because the space is basically four walls with utilities stubbed in. However, landlords often will provide a tenant improvement allowance or rent abatement as part of the lease to cover some or all of the cost of build-out.

Note 3: Final Architectural Drawings, Permits, and Approvals. You must prepare all final architectural drawings required by the jurisdiction where your shoppe is located and have signed approval by us based on our standards and specifications. This includes a full set of plans for permitting and approvals, which must be approved by us, the governmental authority that issues the permits and approvals for your jurisdiction, and your landlord.

Note 4: IT and POS Systems. This item includes the estimated costs to purchase or license the required electronic point-of-sale ("POS") system and software, including printers, a smartphone or other similar device with email capability, a minimum 1 GB of combined data plan with a reputable high speed wireless carrier and in-shoppe customer accessible wireless Internet service. The current POS System includes a proprietary customer loyalty rewards program. See Item 11. All of these costs are paid to third party suppliers.

Note 5: Equipment, Fixtures and Furniture. This item includes the estimated costs to obtain the required furniture, finishes, counter, decor and kitchen equipment for a shoppe, including: 200-250 cu. ft. of refrigeration and freezer storage, a 650 lb. capacity ice machine(s), cooking equipment, exhaust hood (if

Note 6: Signage and Menu Board.

Chart A provides the estimated costs to obtain signs and a digital menu board for a shoppe, including custom signs, interior and exterior signs and shoppe displays.

The menu boards must meet our specifications as to size, layout and location in your Bambū shoppe.

• Note 7: Opening Inventory and Supplies.

You must open with and maintain an adequate inventory of ingredients, coffee, teas, powders, and syrups, as well as shoppe supplies and Bambu branded products and merchandise for retail sale to your customers.

• Note 8: Security Deposits, Utility Deposits, Business Licenses, Insurance, and Professional Fees.

Security deposits, if applicable to your shoppe, range from zero to three months' rent.

Utility deposits range from a nominal amount to approximately $2,000, and business licenses range from approximately $100 to $1,000, depending on your location.

You may also incur fees for professional services such as legal or accounting service in establishing your shoppe.

• Note 10: Initial Marketing Campaign.

You must set up all shoppe social media accounts we recommend, including utilizing a standardized third-party social media management technology, and spend a minimum of $4,000 for an initial opening marketing program for your shoppe, to take place on the dates we designate after your shoppe opens.

The low amount of the Total Estimated Initial Investment is based on retro-fitting an existing QSR location to a Bambū shoppe location and the high amount of Total Estimated Initial Investment is for a full build-out of an 1,100 sq. ft. location with a modest tenant improvement allowance.

In certain major metropolitan areas, actual costs may exceed the high range estimates in the chart.

You should review

Source: Item 7 — (FDD pages 18–22)