Are the fees and charges payable to Bambu refundable?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
The fees in Item 6 apply to all franchises, including those developed under a MUD Agreement.
Fees and charges imposed by and payable to us.
All of these fees and charges are nonrefundable.
All fees and charges are payable by ACH transfer.
Except as described in this Item, all fees and charges are uniformly imposed on franchisees currently acquiring a franchise.
We reserve the right to modify these fees and charges including to resolve disputes, to address current business and economic conditions and under other circumstances.
- On or after the 1st day of each month, we will withdraw the monthly Royalty Fee for the current month.
On or before July 15th, we will reconcile the Royalty Fee due based on your actual Net Revenues generated between January 1st and June 30th minus the monthly payments made for those months, and we will withdraw any additional amounts due no later than five days after completion of the reconciliation.
On or before January 15th of the following year, we will reconcile the Royalty Fee due for the prior calendar year based on your actual Net Revenues generated by your Bambū shoppe in the prior calendar year minus all Royalty Fee amounts previously paid related to your prior year operations, and we will withdraw any additional amounts due no later than five days after completion of the reconciliation.
If you are due a credit after the January 15th reconciliation, we will apply the overpayments to future monthly Royalty Fees until the overpayment is fully applied.
Source: Item 6 — OTHER FEES (FDD pages 14–18)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, all fees and charges payable to Bambu are nonrefundable. This policy applies to all franchises, including those developed under a Multi-Unit Development (MUD) Agreement. The fees and charges are uniformly imposed on franchisees currently acquiring a franchise, although Bambu retains the right to modify these fees and charges to resolve disputes, address business and economic conditions, or under other circumstances.
This nonrefundable policy means that once a franchisee pays a fee to Bambu, they generally cannot get that money back, even if circumstances change or the franchisee doesn't proceed with the franchise. This is a standard practice in franchising, as these fees often cover Bambu's administrative costs, training expenses, and ongoing support.
However, the FDD does state that if a franchisee is due a credit after the January 15th reconciliation of Royalty Fees, Bambu will apply the overpayments to future monthly Royalty Fees until the overpayment is fully applied. This is an exception to the nonrefundable fees and charges policy.
Prospective franchisees should carefully consider this nonrefundable policy and ensure they fully understand the terms and conditions of each fee before paying it. It would be prudent to discuss with Bambu under which specific conditions, if any, a refund might be considered, despite the general policy.