Under a Multi-Unit Development Agreement for Bambu, what is the formula for calculating the Development Fee?
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 a franchisee enters into a Multi-Unit Development Agreement (MUD Agreement), they will pay a development fee in addition to the initial franchise fee for the first Bambu shop. The development fee is calculated as $19,000 times the number of additional shops to be developed under the MUD Agreement. This fee compensates Bambu for granting the development rights and reserving a specific development area for the franchisee. The total development fee amount will be listed in an addendum to the MUD Agreement.
For each shop opened after the first one under the MUD Agreement, the initial franchise fee will be $39,000. A portion of the development fee, specifically $19,000, will be credited toward this initial franchise fee for each subsequent shop. The remaining balance of $20,000 for the initial franchise fee is due upon execution of the Franchise Agreement for that particular shop, but no later than the deadline outlined in the Development Schedule.
It is important to note that the development fee is non-refundable once paid to Bambu, except for the portion that is credited towards the initial franchise fee for subsequent shops. Franchisees will not be entitled to a refund, return, or rebate of any portion of the initial franchise fees paid under the MUD Agreement, except as explicitly stated in the agreement. Franchisees are also obligated to pay a training fee as outlined in each individual Franchise Agreement.