What is the relationship between the initial franchise fee for a Bambu franchise in Item 5 and the potential need for remodeling expenses as described in Item 6?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
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INITIAL FEES
Franchise Agreement
The initial franchise fee ("Initial Franchise Fee") is $49,000. The Initial Franchise Fee is due in four installments: (1) a non-refundable payment of $15,000 due when you sign the Franchise Agreement for your Bambū shoppe; (2) a non-refundable payment of $10,000 when your lease for your Bambū shoppe is presented to us for review; (3) a non-refundable payment of $15,000 when you take possession of the leased premises, and (4) a non-refundable payment of $9,000 when your opening training program is scheduled. We may reduce or waive the Initial Franchise Fee for franchisees in non-traditional locations or for a franchisee who obtained a suitable location prior to signing the Franchise Agreement, in our discretion. We will discount your initial fee for a second or subsequent shoppe if you qualify to open more than one shoppe at a time pursuant to a MUD Agreement as described below.
Multi-Unit Development Agreement
If you enter into a MUD Agreement, you will sign that agreement together with the Franchise Agreement for your first Bambū shoppe. You will pay the Initial Franchise Fee for the first Bambū shoppe in accordance with the terms of the Franchise Agreement, as described above, and under the MUD Agreement, you will also pay a development fee equal to $19,000 times the number of additional shoppes to be developed under the MUD Agreement (the "Development Fee").
The Initial Franchise Fee for the second and each subsequent Bambū shoppe to be opened under the MUD Agreement will be $39,000. The $19,000 portion of the Development Fee paid for each of the second and subsequent Bambū shoppes to be developed under the MUD Agreement is credited toward the Initial
Franchise Fee to be paid for that additional shoppe. The balance of the Initial Franchise Fee ($20,000) is due upon execution of the Franchise Agreement for that shoppe, but no later than the deadline set forth in the MUD Agreement for signing the Franchise Agreement related to that shoppe.
The Initial Franchise Fee, Development Fee and other expenses set forth in this Item 5, once paid, are nonrefundable. Except as may be described in this Item 5, all franchisees currently acquiring a franchise pay the same franchise fees.
ITEM 6 OTHER FEES
| Type of Fee1 | Amount | Due Date | Remarks |
|---|---|---|---|
| also pay us the monthly | |||
| amount of the Royalty | |||
| Fee during the closure | |||
| period. | |||
| New Equipment, Upgrading, and Remodeling Expenses4, 5 | Will vary depending on the items that are upgraded or remodeled. | As required by us | Payable if we require new equipment, upgrades, or remodeling of the premises, the furnishings or the equipment used in the shoppe. |
What This Means (2025 FDD)
According to the 2025 Bambu Franchise Disclosure Document, the initial franchise fee and potential remodeling expenses are distinct costs, although the condition of the premises can influence both. The initial franchise fee for a single Bambu shop is $49,000, payable in installments. However, this fee can be reduced or waived for non-traditional locations or if the franchisee finds a suitable location before signing the Franchise Agreement. For franchisees entering a Multi-Unit Development (MUD) Agreement, the initial franchise fee for the second and subsequent shops is $39,000, with a $19,000 development fee credited towards it. These fees are generally non-refundable.
Item 7 discusses leasehold improvements, noting that the cost to build out a Bambu location can vary significantly based on factors like the location's square footage, existing condition, and any tenant improvement allowances from the landlord. A second-generation restaurant location with an existing kitchen can substantially reduce build-out costs. The FDD estimates that build-out costs for an in-line leased location of approximately 1,100 sq. ft. can vary widely, with lower estimates assuming a "move-in-ready" space.
While the initial franchise fee grants the franchisee the right to operate under the Bambu brand, the remodeling or leasehold improvement costs cover the physical setup of the location. The initial franchise fee does not cover remodeling expenses. The condition of the location can impact the overall investment, as a location requiring extensive remodeling will increase the initial investment beyond the franchise fee. Prospective franchisees should carefully evaluate potential locations and negotiate lease terms to minimize build-out costs, as these are separate from the franchise fee.