Under what condition is the Relocation Fee payable for a Bambu franchise?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
epartment. See Item 11. |
| Column 1 | Column 2 | Column 3 | Column 4 |
|---|---|---|---|
| Type of Fee 1 | Amount | Due Date | Remarks |
| Other at Shoppe Location Trainings and Certifications 1, 2 | Our then current published rates which are currently $900 per day plus travel related expenses | As incurred | Payable only if you request or we require additional training specific to you. |
| Costs and Attorneys' Fees 2 | Will vary depending on nature of your default or the claim brought | As incurred | Payable if we are successful in a legal action. |
| Indemnification Under Franchise Agreement 2 | Will vary depending on nature of the claim against us | As incurred | You have to reimburse us if we are held liable for claims resulting from your Bambū shoppe operations. |
| Insurance Premiums 2, 5 | Will vary depending on your location, policy limits, and insurer | As incurred | If you do not pay your premiums, although we do not have to, we can pay them for you and you must reimburse us. |
| Cost of Product Testing | Hourly rate of $150 per person plus the cost of supplies and equipment | As incurred | You must reimburse us for all reasonable costs we incur in investigating and determining whether any previously unapproved products, programs, or suppliers you desire to use meet our standards and specifications. |
| and Supplier | |||
| Approval 1 , 2 | |||
| Relocation Fee 1, 2 | $15,000 | When we approve the new location lease | Payable only if you move your current location during the term of the Franchise Agreement. The fee provides for similar new Bambū shoppe operations support, including two site visits and three days of additional training support as determined by us. If you clos |
Source: Item 6 — OTHER FEES (FDD pages 14–18)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, a Relocation Fee of $15,000 is payable under specific conditions. This fee is incurred only if a franchisee decides to move their current Bambu location during the term of the Franchise Agreement. The fee is due when Bambu approves the new location lease.
The Relocation Fee covers support for the new Bambu shoppe operations, including two site visits and three days of additional training support, as determined by Bambu. This suggests that the fee is intended to offset the costs Bambu incurs in assisting with the relocation process and ensuring the new location meets their standards.
It's important to note that if a franchisee closes their Bambu shoppe prior to relocating, they will also have to pay the monthly Royalty Fee during the closure period. This Royalty Fee obligation during closure adds another layer of cost to consider when planning a relocation. The FDD specifies that the franchisee is deemed to have generated Net Revenues on a monthly basis in an amount equal to $800 divided by 3.5 percent (prorated for any partial months) for the purposes of reconciling Royalty Fees during the closure period.