How much is the Development Fee for a MUD Agreement with Bambu, and how is it calculated?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
t to open more than two additional Bambū shoppes under the MUD Agreement.
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- The Initial Franchise Fee for each Bambū shoppe to be opened under the MUD Agreement is $39,000. At the time you sign the MUD Agreement, you will pay a Development Fee of $19,000 times the number of additional Bambū shoppes to be developed and opened under the MUD Agreement after your first Bambū shoppe. We will apply $19,000 of the total amount of the Development Fee to the Initial Franchise Fee for each additional shoppe you open. The remainder of the Initial Franchise Fee due for the second and subsequent Bambū shoppe is due upon execution of the Franchise Agreement for that shoppe, but no later than the deadline set forth i
Source: Item 7 — (FDD pages 18–22)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, franchisees entering into a Multi-Unit Development (MUD) Agreement must pay a Development Fee. This fee is $19,000 multiplied by the number of additional Bambu shoppes the franchisee commits to develop and open beyond their initial location. This fee is paid upon execution of the MUD Agreement. For example, if a franchisee commits to opening two additional Bambu locations, the Development Fee would be $38,000 (2 x $19,000).
Bambu applies $19,000 of the total Development Fee towards the Initial Franchise Fee for each additional shoppe opened under the MUD Agreement. The remaining balance of the Initial Franchise Fee for subsequent locations is due when the Franchise Agreement for that specific shoppe is signed, but no later than the deadline outlined in the MUD Agreement. This means that while the initial outlay for a MUD agreement is higher, a portion of it is essentially a pre-payment for future franchise fees.
The estimated initial investment for a MUD agreement also includes an additional amount of $20,000 due upon the execution of the Franchise Agreement. Prospective franchisees should carefully consider these costs and factor them into their financial planning when considering a MUD agreement with Bambu. The FDD advises consulting with a business advisor to review these figures carefully before making any decisions.