Does a Bambu franchisee authorize Bambu to initiate electronic fund transfers?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
he protection of cardholder data throughout the term of this Agreement. Franchisee's Bambū shoppe shall be in compliance with PCI DSS at all times.
- 10.4 Electronic Funds Transfer. Franchisee authorizes Bambu and its affiliates to initiate debit entries and credit entries to Franchisee's checking, savings or other account for the payment of the Royalty Fee (defined in Section 12.1), payment of the Marketing and Technology Fee (defined in Section 12.2), the purchase of equipment and inventory, and any other amounts due from Franchisee under this Agreement or otherwise. Contemporaneously with the execution of this Agreement and thereafter within five days of
receipt of any written request from Bambu, Franchisee shall execute and return to Bambu an additional authorization agreement for prearranged payments with account and other information to ensure the authorization agreement is current and valid. Bambu may require Franchisee to pay amounts due under this Agreement or otherwise by means in addition to or other than electronic funds transfer and Franchisee agrees to comply with Bambu's payment instructions.
11. RELOCATION
Franchisee may not relocate the Franchised Location without Bambu's prior written consent. Any approved new locations shall not be within any other Bambū shoppe's protected area, however.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to the 2025 FDD, a Bambu franchisee authorizes Bambu and its affiliates to initiate debit and credit entries to the franchisee's checking, savings, or other account. This authorization covers payments for the Royalty Fee, Marketing and Technology Fee, the purchase of equipment and inventory, and any other amounts due under the Franchise Agreement.
As part of the agreement, the franchisee must execute and return an additional authorization agreement for prearranged payments, ensuring the account information is current and valid. This agreement must be provided upon signing the Franchise Agreement and within five days of any written request from Bambu.
Bambu retains the right to require payments through methods other than electronic funds transfer and the franchisee must comply with Bambu's payment instructions. Bambu can also require the monthly Royalty Fee or the Marketing and Technology Fee payments be made on a weekly or bi-weekly basis if the franchisee does not timely submit the required payment or maintain a sufficient amount in its accounts to permit Bambu to initiate a debt entry of amounts then due. This gives Bambu significant control over payment collection and ensures timely payments of fees and other dues.