What is the successor franchise fee for a Bambu franchise?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
ent used in the shoppe. |
| Column 1 | Column 2 | Column 3 | Column 4 |
|---|---|---|---|
| Type of Fee 1 | Amount | Due Date | Remarks |
| Transfer Fee 1, 2 | $15,000 If you transfer rights under a MUD Agreement, you also pay a $7,500 transfer fee for each undeveloped franchise right | Payable when you present the written offer from the proposed transferee to us | The Transfer Fee applies to a transfer of the Franchise Agreement, MUD Agreement, interest in the shoppe, or the franchise is transferred by you. The transferee is charged no Initial Franchise Fee. We will provide training for three representatives of a transferee under the Franchise Agreement at no further charge. |
Source: Item 6 — OTHER FEES (FDD pages 14–18)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, a franchisee who qualifies for and opts for a successor franchise at the end of their initial term will need to pay a Successor Franchise Fee of $15,000. This fee is due when the franchisee signs the then-current Franchise Agreement.
This fee is standard in the franchise industry and covers Bambu's costs associated with renewing the franchise agreement and ensuring the franchisee's continued operation under the Bambu brand. It's important to note that additional training may be required, which could incur further costs.
Prospective franchisees should factor this potential fee into their long-term financial planning. If a franchisee decides to renew their agreement, they should be prepared to pay the $15,000 fee at the time of signing the new agreement. It is important to maintain good standing with Bambu to qualify for a successor franchise.