What is NOT included in the 'Additional Funds' estimate for a Bambu franchise?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
This is an estimate of your pre-operational expenses, which we have not listed above, as well as additional funds necessary for the first three months of your shoppe operations.
These figures are estimates and we cannot guarantee that you will not have additional expenses starting the shoppe.
Your costs depend on factors such as: how much you follow our methods and procedures; your management skill, experience and business acumen; local economic conditions; the local market for our products and programs; the prevailing wage rate; competition; and the sales level reached during this initial period.
This item includes a variety of expenses and working capital items during your start-up phase such as: legal and accounting fees; additional rent expenses; insurance premiums; the first three month's payment of the Royalty Fee and Marketing and Technology Fee, which each begin the first full month following the month the shoppe opens; additional advertising and promotional expenses and materials; utility charges; and other miscellaneous costs.
This item does not include your salary or living expenses.
Source: Item 7 — (FDD pages 18–22)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the "Additional Funds" estimate covers pre-operational expenses not listed elsewhere, along with funds needed for the first three months of operation. This estimate includes expenses and working capital items during the start-up phase, such as legal and accounting fees, additional rent, insurance premiums, and the first three months of Royalty and Marketing and Technology Fees. It also covers additional advertising, promotional expenses, materials, utility charges, and other miscellaneous costs.
However, the FDD explicitly states that the "Additional Funds" estimate does not include the franchisee's salary or living expenses. This means that prospective Bambu franchisees should plan separately for their personal financial needs during the initial months of operation, as these are not factored into the estimated initial investment.
It is important for potential franchisees to carefully consider their personal financial situation and living expenses when evaluating the overall investment required to start a Bambu franchise. While the franchise provides an estimate for operational costs, franchisees must ensure they have sufficient funds to cover their own needs during the startup phase.