factual

In Minnesota, when are the initial franchise fees payable to Bambu?

Bambu Franchise · 2025 FDD

Answer from 2025 FDD Document

The following language is added at the end of Items 5 and 7:

All initial franchise fees payable to us shall be deferred until the day that your Bambū shoppe opens for business.

Source: Item 23 — Receipts (FDD pages 52–209)

What This Means (2025 FDD)

According to Bambu's 2025 Franchise Disclosure Document, franchisees in Minnesota have a specific agreement regarding the payment of initial franchise fees. Unlike the standard agreement where fees might be due upon signing, in Minnesota, the initial franchise fees are deferred. This means a new Bambu franchisee in Minnesota isn't required to pay the initial franchise fee until their Bambu location actually opens for business.

This deferral is a notable benefit for franchisees in Minnesota, as it reduces the upfront financial burden. It allows the franchisee to allocate those funds to other essential startup costs, such as location build-out, inventory, and initial marketing efforts. This arrangement can significantly ease cash flow concerns during the critical pre-opening phase of the business.

It's important for prospective franchisees to understand that while the initial franchise fee is deferred, it is still due in full once the store opens. This deferred payment schedule does not change the total amount of the fee, only the timing of when it must be paid. Franchisees should plan their finances accordingly to ensure they have the funds available when the store commences operations. This deferral is specific to the initial franchise fee and does not apply to other fees, such as the ongoing royalty or marketing fees, which may have different payment schedules as outlined in the FDD.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.