In the event of a payment default to Bambu, will the exchange rate that results in a greater amount to Bambu be used?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
If, for any reason whatsoever, a payment that is due to Bambu under this Agreement is not paid on the date that such payment is due, the exchange rate to be used shall be either the exchange rate published on the due date or the exchange rate published on the date that the payment is actually made, whichever results in a greater amount to Bambu.
If The Wall Street Journal is not published on the date of conversion, the applicable exchange rate will be that rate published in The Wall Street Journal on the nearest date of publication prior to the date of conversion or by a successor or equivalent publication to be designated by Bambu in the event The Wall Street Journal ceases to be published or ceases to publish the applicable exchange rates.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, if a payment is not made on time, the exchange rate used to calculate the payment will be the one that results in a greater amount for Bambu. Specifically, the exchange rate will be either the rate published on the original due date or the rate published on the date the payment is actually made, whichever yields the higher amount for Bambu. The exchange rate is typically found in The Wall Street Journal. If The Wall Street Journal is not published on the date of conversion, Bambu will use the rate from the nearest prior publication date or designate a successor publication.
This policy has significant implications for franchisees who are required to make payments to Bambu in a currency other than United States Dollars. If a franchisee misses a payment deadline, they risk having the exchange rate recalculated to Bambu's advantage, potentially increasing the amount they owe. This could occur due to currency fluctuations between the due date and the actual payment date.
Franchisees are responsible for all costs associated with currency transfers and exchanges. Bambu also retains the right to modify payment instructions with prior written notice. Therefore, franchisees need to ensure timely payments and stay informed of any changes in payment procedures to avoid additional costs and unfavorable exchange rate calculations.