If entering a Multi-Unit Development Agreement with Bambu, when is the agreement signed relative to the Franchise Agreement for the first shoppe?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
cribed below.
Multi-Unit Development Agreement
If you enter into a MUD Agreement, you will sign that agreement together with the Franchise Agreement for your first Bambū shoppe. You will pay the Initial Franchise Fee for the first Bambū shoppe in accordance with the terms of the Franchise Agreement, as described above, and under the MUD Agreement, you will also pay a development fee equal to $19,000 times the number of additional shoppes to be develo
Source: Item 5 — (FDD pages 13–14)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, if you enter into a Multi-Unit Development Agreement (MUD Agreement), you will sign that agreement at the same time as you sign the Franchise Agreement for your first Bambu shoppe. This means that the commitments and obligations for both the overall development plan and the initial store are agreed upon simultaneously. This concurrent signing ensures that both parties are aligned on the development schedule and the terms for the first location right from the start.
This simultaneous signing has implications for the fees you'll pay. When signing both agreements, you'll need to pay a non-refundable payment of $15,000, which is the first installment of the Initial Franchise Fee for your first Bambu shoppe. Additionally, you will pay a development fee equal to $19,000 times the number of additional shoppes to be developed under the MUD Agreement. This Development Fee secures your rights to develop additional locations within the agreed-upon territory and schedule.
For each subsequent Bambu shoppe opened under the MUD Agreement, the initial franchise fee will be $39,000. A portion of the Development Fee, specifically $19,000 per shoppe, will be credited towards this initial franchise fee. The remaining balance of the initial franchise fee ($20,000) for each subsequent shoppe is due upon execution of the Franchise Agreement for that particular shoppe, but no later than the deadline specified in the Development Schedule. This structure incentivizes adherence to the development schedule outlined in the MUD Agreement.
In summary, signing the MUD Agreement and the first Franchise Agreement together commits you to a broader development plan while also addressing the specifics of your initial location. Understanding the payment schedule and the implications of the Development Schedule are crucial for managing your investment and expansion strategy with Bambu.