When do I sign the Multi-Unit Development Agreement for a Bambu franchise?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
cribed 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
Source: Item 5 — (FDD pages 13–14)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, if you are granted the right to enter into a Multi-Unit Development Agreement (MUD Agreement), you will sign that agreement at the same time as you sign the Franchise Agreement for your first Bambu shoppe. This means that the MUD Agreement, which outlines your obligations to develop multiple Bambu locations, is signed concurrently with the agreement for your initial franchise.
This simultaneous signing is significant because it commits you to a larger development plan from the outset. You're not just agreeing to open one location; you're committing to a schedule for opening multiple units within a specific territory. This commitment is formalized through a Development Schedule, which is included as an addendum to the MUD Agreement.
In consideration of these development rights, you'll need to pay a development fee at the time of signing the MUD Agreement. This fee is calculated as $19,000 multiplied by the number of additional shoppes you plan to develop beyond the first one. This fee is in addition to the initial franchise fee required for the first shoppe. For each subsequent Bambu shoppe opened under the MUD Agreement, the initial franchise fee will be $39,000, with the $19,000 portion of the development fee credited towards this amount.