What collateral is required for the note payable with the Gap Fund Program for Bambu?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
cluding the interest component are as follows:
| 2025 | $ 15,028 |
|---|
NOTE4-NOTESPAYABLE
Notes payable consist of the following at December 31,
| 2024 | 2023 | |
|---|---|---|
| Note payable with a finance company. Face Amount | $ 168,685 | $ |
| $183,258 interest at 19.99% per year, payment in 84 | ||
| installments of $4,068. Collateralized by the assets of the | ||
| Company and the personal guaranty of the managing | ||
| member of the Company. | ||
| Note payable with a bank. Face Amount $179,970, interest | 179,970 | |
| at 8.25% per year, payment in 84 installments of $2,838. | ||
| Collateralized by the assets of the Company and the | ||
| personal guaranty of the managing member of the | ||
| Company. | ||
| Note payable Gap Fund Program Face amount of $75,000, | ||
| in |
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the note payable with the Gap Fund Program is collateralized by the assets of the company and a personal guaranty of the managing member of the company.
Specifically, the table in Item 23 shows that in 2024, the face amount for the note payable under the Gap Fund Program was $51,644. The FDD also shows that in 2023, the face amount was $75,000, with interest at 5.75% per year and payments in 36 monthly installments of $2,273.
This means that a new Bambu franchisee utilizing the Gap Fund Program should expect to provide the company's assets as collateral, as well as a personal guarantee, to secure the financing. The terms of the loan, such as the interest rate and payment schedule, are subject to change, as evidenced by the differences between the 2023 and 2024 figures.