For a Bambu franchise in North Dakota, when are the initial fees payable to Bambu Franchising LLC?

According to Bambu's 2025 Franchise Disclosure Document, North Dakota franchisees benefit from a specific addendum regarding the payment of initial fees. This addendum stipulates that all initial fees payable to Bambu or its affiliates are deferred. This deferral lasts until Bambu has fulfilled its initial obligations to the franchisee under the Franchise Agreement. Furthermore, the franchisee must have commenced operations under the Franchise Agreement before these fees become due. This condition is specific to North Dakota.

This deferral of initial fees is a significant advantage for prospective Bambu franchisees in North Dakota. It reduces the upfront financial burden and aligns the franchisor's interests with the franchisee's success. The franchisee isn't required to pay the initial fees until Bambu has met its obligations and the franchise location is up and running. This arrangement provides a level of security and ensures that the franchisee only invests fully once the business is ready to operate.

Without this addendum, initial franchise fees are typically due upon signing the Franchise Agreement or shortly thereafter, regardless of whether the franchisor has completed its pre-opening obligations. This North Dakota-specific clause offers a more franchisee-friendly approach, reducing the financial risk during the initial stages of the business. Prospective franchisees should carefully review the Franchise Agreement and this addendum to fully understand the conditions and obligations of both parties before commencing operations.