Does the Bambu Franchise Disclosure Document discuss Nonrefundable Fees, and if so, on what page?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
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, the topic of nonrefundable fees is addressed. Specifically, in Section 2.1(c) on page 122, the document states that all fees paid under the Multi-Unit Development Agreement are nonrefundable, with a limited exception.
The exception is that $19,000 of the Development Fee can be credited towards the initial franchise fee for each of the second and subsequent Bambu shoppes developed under the agreement. However, once the fees are paid to Bambu, the franchisee is generally not entitled to a refund, return, or rebate of any portion of the initial franchise fees.
This has significant implications for prospective franchisees. It means that the Development Fee, which is calculated as $19,000 multiplied by the number of additional shoppes to be developed beyond the first, is nonrefundable. While a portion of this fee can be applied as a credit to the initial franchise fee for subsequent locations, the initial payment is at risk. Franchisees should carefully consider their development plans and financial situation before entering into a Multi-Unit Development Agreement with Bambu, as they will not be able to recover these fees should their plans change.