Are fees paid to Bambu refundable?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.6 Nonrefundable Fees.
Except as specifically contemplated in this Agreement, all fees once paid, shall be nonrefundable in all circumstances.
2. INITIAL FRANCHISE AND DEVELOPMENT FEES
2.1. Fees.
- (a) In consideration of the development rights granted herein, concurrently with the execution of this MUD Agreement Franchisee will pay to Bambu a development fee equal to $19,000 multiplied by the number of additional shoppes, beyond the first shoppe, to be developed hereunder ("Development Fee"). This Development Fee is in addition to the initial franchise fee applicable for the first shoppe to be developed hereunder, which must be paid in accordance with the terms of the Franchise Agreement for that shoppe. The total Development Fee is set forth in the Addendum. Franchisee acknowledges that the Development Fee represents payment for the grant of the development rights and for a reserved Development Area and Bambu has fully earned the Development Fee upon receipt.
- (b) The initial franchise fee for each such additional shoppe shall be $39,000. Bambu will credit $19,000 of the Development Fee to the initial franchise fee due under the Franchise Agreement for each of the second and subsequent shoppes to be developed under this MUD Agreement. After applying the credit for the portion of the Development Fee as described above, the balance of the initial franchise fee of $20,000 shall be due upon execution of the Franchise Agreement for that shoppe, but no later than the deadline set forth in the Development Schedule (defined in Section 3.1) for signing that Franchise Agreement. Franchisee shall also be required to pay the Training Fee set forth under each Franchise Agreement in such manner and time as set forth in each Franchise Agreement.
- (c) Other than to have applied the portions of the Development Fee to a portion of the initial franchise fee for subsequent Franchise Agreements as described in Section 2.1(b), all fees hereunder are nonrefundable once paid to Bambu and under no circumstances will Franchisee be entitled to a refund, return or rebate of any portion of initial franchise fees paid hereunder.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, fees paid to Bambu are generally nonrefundable. Specifically, all fees paid are nonrefundable unless the agreement explicitly states otherwise.
There is one exception regarding the Development Fee. A portion of the Development Fee ($19,000 per additional shoppe) may be credited toward the initial franchise fee for subsequent Bambu locations developed under a Multi-Unit Development Agreement. The balance of the initial franchise fee ($20,000) is due upon signing the Franchise Agreement.
Bambu acknowledges that the Development Fee is compensation for granting development rights and reserving a Development Area, and Bambu earns this fee upon receipt. Franchisees should be aware that, apart from the Development Fee credit, they will not be entitled to a refund, return, or rebate of any initial franchise fees paid to Bambu.