When are the four installments for the Bambu initial franchise fee due?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
ESTIMATED INITIAL INVESTMENT
A. Franchise Agreement
| 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 |
| Initial Franchise Fee (See Note 1) | $49,000 | $49,000 | Payable in four installments | Four installments due as described in Item 5 | Us |
| Leasehold Improvements | $35,000 | $145,000 | As incurred | Before Opening | Other Suppliers |
| (See Note 2) | |||||
| Final Architectural | $4,000 | $10,000 | As incurred | Before Opening | Other Suppliers |
| Drawings, Permits, and | |||||
| Approvals | |||||
| (See Note 3) | |||||
| IT and POS Systems | $2,500 | $2,500 | As incurred | Before Opening | Other Suppliers |
| (See Note 4) | |||||
| Equipment, Fixtures and | $28,000 |
Source: Item 7 — (FDD pages 18–22)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the initial franchise fee is $49,000 and is payable in four installments. The timing of these four installments is described in Item 5 of the FDD. Prospective franchisees should carefully review Item 5 to understand the specific payment schedule and any conditions attached to these payments. Understanding the payment schedule is crucial for financial planning and ensuring timely compliance with the franchise agreement. Missing a payment deadline could potentially lead to penalties or even termination of the agreement.
Franchisors typically require the initial franchise fee to be paid in full before the franchisee begins operations. This fee covers the costs associated with granting the franchise, including training, site selection assistance, and access to the franchisor's brand and operating system. The fact that Bambu allows the initial franchise fee to be paid in installments may be beneficial for franchisees as it reduces the upfront financial burden. However, franchisees should be aware of any interest or other charges associated with installment payments.
It is important to note that none of the fees or costs estimated in the chart are refundable, except for deposits paid to third parties. This means that if a franchisee decides not to proceed with opening a Bambu location after paying some or all of the initial franchise fee, they may not be able to recover those funds. Therefore, prospective franchisees should conduct thorough due diligence and carefully consider their financial situation before signing the franchise agreement and making any payments.