For Bambu franchises in North Dakota, when are the initial fees payable to Bambu and its affiliates due?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
- The following statement is added at the end of Item 5:
All initial fees payable to us and any of our affiliates shall be deferred until we have fulfilled our initial obligations to you under the Franchise Agreement and you have commenced operations pursuant to the Franchise Agreement.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, specifically the addendum for North Dakota, the payment of all initial fees to Bambu and its affiliates is deferred. This means a new Bambu franchisee in North Dakota doesn't have to pay these fees upfront. Instead, the fees are due only after Bambu has fulfilled its initial obligations outlined in the Franchise Agreement.
Furthermore, the franchisee only needs to pay the initial fees once they have commenced operations of their Bambu shop. This arrangement is more favorable for the franchisee, as it reduces the initial financial burden and risk. It ensures that the franchisee only pays the fees after Bambu has delivered on its promises and the business is up and running.
This deferral of initial fees is a specific protection for franchisees in North Dakota, likely due to regulatory requirements in that state. Prospective franchisees should confirm all of Bambu's initial obligations and ensure they are clearly defined in the Franchise Agreement to avoid any misunderstandings about when the fees become payable.