If I obtain built-to-suit lease space for my Bambu franchise, how does that affect the build-out costs?

According to Bambu's 2025 Franchise Disclosure Document, securing built-to-suit lease space, or "move-in-ready" space, can lower your build-out costs. The FDD estimates the cost to build out space in an in-line leased location of approximately 1,100 sq. ft. The lower end of the estimated range assumes you have obtained built-to-suit lease space. However, the document emphasizes that each situation is unique and requires individual review and negotiation with the landlord.

The build-out costs for a Bambu location can vary significantly based on factors such as the location's square footage, its existing condition, any tenant improvement allowances provided by the landlord, and the availability of necessary utilities and services. Second-generation restaurant or QSR locations that already have a kitchen and plumbing can substantially reduce these costs, depending on the final layout. The document divides Bambu shoppes into two areas: the kitchen area (including bathrooms, storage, and maintenance), which typically requires 400-500 sq. ft. and is the most expensive to build out, and the front of house (customer service and seating), which typically needs 500-600 sq. ft.

In spaces referred to as "Vanilla Shell" or "Gray Shell," where the space is essentially four walls with utilities stubbed in, the build-out costs are generally higher. However, landlords may offer a tenant improvement allowance or rent abatement to offset some or all of these costs. The FDD highlights that finding the best location and understanding the available space types are crucial factors in managing build-out expenses. Prospective franchisees should carefully consider these variables and negotiate lease terms that provide the most favorable conditions for their specific location.