Does Bambu currently derive revenue from a franchisee's purchase of the POS system?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
You are required to purchase a point-of-sale system, including hardware to service our loyalty rewards program, that meets our specifications. The point-of-sale system that we currently require is the Square bundled system (defined in Item 11 as the "POS System"). It contains the required supporting hardware and software applications, which has the capability of facilitating our system-wide customer loyalty rewards program and has built in merchant software for both shoppe and hands-free online ordering credit card processing and customer tipping. You will pay the provider of the POS System monthly fees for maintenance and updates. Currently, we derive no revenue from your purchase of the POS System, although we reserve the right to derive revenue from your purchase and license of the POS System or any proprietary software, if and when we develop our own proprietary system or software and license them to you. See Items 7 and 11. We may require you to use a new or different point-of-sale system in the future, in which case you must convert your POS System to the new system. You must own a smartphone or other mobile device with access to the Internet enabling you to communicate via SMS. Additionally, we require that you login to, regularly access, and fully participate in our FRC, which includes communicating with other franchisees and with us. We may also require you to purchase additional hardware equipment, software and possible subscriptions to online applications meeting our minimum specifications in the future at your expense. Your participation and your communications on our FRC are governed by the standards, specifications and guidelines we establish from time to time. See Items 7 and 11.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 22–26)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, franchisees are required to purchase a point-of-sale (POS) system that meets Bambu's specifications, which is currently the Square bundled system. Franchisees pay monthly fees to the POS system provider for maintenance and updates. As of the FDD date, Bambu does not derive any revenue from the franchisee's purchase of the POS system. However, Bambu reserves the right to derive revenue from the purchase and license of the POS system or any proprietary software in the future, specifically if and when Bambu develops its own proprietary system or software and licenses them to franchisees.
Bambu may require franchisees to use a new or different POS system in the future, which would necessitate converting to the new system. Franchisees must also own a smartphone or other mobile device with internet access for SMS communication. Additionally, franchisees are required to participate in Bambu's Franchisee Resource Center (FRC). Bambu may also require franchisees to purchase additional hardware, software, and subscriptions to online applications in the future.
This arrangement means that while franchisees are currently not contributing directly to Bambu's revenue through their POS system purchases, this could change. Prospective franchisees should be aware that Bambu retains the right to monetize the POS system in the future if they develop their own proprietary system. Franchisees should factor in potential future costs associated with new POS systems or software, as well as ongoing fees for maintenance, updates, and potentially new hardware or software required by Bambu.