What Royalty Fee must a Bambu franchisee pay during a closure period for relocation?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
y Royalty Fees until the overpayment is fully applied. If you close your Bambū shoppe during a relocation you must pay us the $800 per month Royalty Fee during the closure period. In that event, for purposes of reconciling the Royalty Fees, you shall be deemed to have generated during the closure period Net Revenues on a monthly basis in an amount equal to $800 di
Source: Item 6 — OTHER FEES (FDD pages 14–18)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, if a franchisee closes their Bambu shop for relocation, they are required to pay a monthly Royalty Fee of $800 during the closure period.
For the purpose of reconciling Royalty Fees, Bambu will deem that the franchisee generated Net Revenues on a monthly basis equal to $800 divided by 3.5 percent, which is prorated for any partial months of closure. This means that even though the store is closed and not generating actual revenue, Bambu calculates a hypothetical revenue figure to determine the Royalty Fee owed during the relocation closure.
This policy ensures that Bambu continues to receive Royalty Fee payments even when a store is temporarily closed for relocation. Franchisees need to factor in this ongoing expense when planning a relocation, as it adds to the overall cost of moving the business. The franchisee will also need to pay a $15,000 relocation fee.