How is the initial franchise fee for a Bambu franchise payable?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
| Column 1 | Column 2 | Column 3 | Column 4 | Column 5 | |
|---|---|---|---|---|---|
| Type of Expenditure* | Amount (Low) | Amount (High) | Method of Payment | When Due | To Whom Payment Is To Be Made |
| Initial Franchise Fee (See Note 1) | $49,000 | $49,000 | Payable in four installments | Four installments due as described in Item 5 | Us |
Source: Item 7 — (FDD pages 18–22)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the initial franchise fee of $49,000 is payable in four installments. The specific schedule for these installments is detailed in Item 5 of the FDD, which is referenced in the table.
For franchisees entering into a Multi-Unit Development (MUD) Agreement, the payment structure is different. The initial franchise fee for each additional Bambu shoppe under the MUD Agreement is $39,000. Upon signing the MUD Agreement, a Development Fee is due, calculated as $19,000 multiplied by the number of additional shoppes to be developed. Of this Development Fee, $19,000 will be applied towards the initial franchise fee for each additional shoppe. The remaining balance of the initial franchise fee for subsequent shoppes is due upon execution of the Franchise Agreement for that specific shoppe, but no later than the deadline outlined in the MUD Agreement for signing that Franchise Agreement.
Prospective franchisees should note that training for each Bambu shoppe is scheduled only after the initial franchise fee has been paid in full. This condition emphasizes the importance of adhering to the payment schedule to ensure timely commencement of the training program. Franchisees should carefully review Item 5 of the FDD for the complete details on the installment payment plan and any associated conditions.