How does Bambu apply payments received from Franchisees or third parties?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding any designation by Franchisee, Bambu shall have sole discretion to apply any payments by Franchisee, and any amounts received by Bambu on Franchisee's behalf from third party vendors or customers to any of Franchisee's past due indebtedness to Bambu for the Royalty Fee, the Marketing and Technology Fee, purchases from Bambu or its affiliates, interest or any other indebtedness.
Franchisee acknowledges that Bambu has the right to set-off any amounts Franchisee may owe to Bambu against any amounts Bambu might owe to Franchisee.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu has the sole discretion to apply payments received from franchisees or from third parties on the franchisee's behalf. These payments can be applied to any past due indebtedness the franchisee has with Bambu. This includes royalty fees, marketing and technology fees, purchases from Bambu or its affiliates, interest, or any other form of debt owed to Bambu.
This means that even if a franchisee designates a payment for a specific purpose, Bambu can override that designation and apply the funds to older, outstanding debts. This could impact a franchisee's ability to manage their finances, as they cannot guarantee that payments will be used for their intended purpose if they have existing debts with Bambu.
Furthermore, Bambu has the right to offset any amounts the franchisee owes to Bambu against any amounts Bambu might owe to the franchisee. This could occur, for example, if a franchisee is owed a refund or credit from Bambu. This policy provides Bambu with significant control over the application of funds and prioritizes the franchisor's financial interests.