When does the Franchisee begin paying the Marketing and Technology Fee to Bambu?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
hment I ("Marketing and Technology Fee"). The Marketing and Technology Fee is subject to annual increases on 90 days' written notice to Franchisee.
12.3 Payment Terms.
a. The Royalty Fee shall be payable $800 per month due on the first day of each month starting in the month following the month in which Franchisee commences operations of its Bambū shoppe. On or before July 15th of each calendar year, Bambu will reconcile the Royalty Fee due based on Franchisee's actual Net Revenues generated between January 1st and June 30th minus the monthly payments made for those months, with any additional amounts due and payable no later than five days after completion of the reconciliation. On or before January 15th of each year, Bambu will reconcile the Royalty Fee due for the prior calendar year based on Franchisee's actual Net Revenues generated by Franchisee's Bambū shoppe in the prior calendar year minus all Royalty Fee amounts previously paid related to Franchisee's prior year operations, with any additional amounts due and payable no later than five days after completion of the reconciliation. If Franchisee is due a credit after the January 15th reconciliation, Bambu will apply the overpayments to future monthly Royalty Fees until the overpayment is fully applied. If, during a relocation in accordance with Article 11, Franchisee closes its Bambū shoppe prior to opening at its new Franchised Location, for purposes of reconciling the Royalty Fees under this Section 12.3, Franchisee shall be deemed to have generated during the closure period Net Revenues on a monthly basis in an amount equal to $800 divided by 3.5 percent (prorated for any partial months). The Royalty Fee is based on your POS System sales records.
- b. The Marketing and Technology Fee shall be payable on the first day of each month starting in the month following the month in which Franchisee commences operations of its Bambū shoppe.
- c. Franchisee hereby authorizes Bambu to initiate debit entries to Franchisee's checking or savings account and authorizes any depository of such accounts to debit such accounts for the payment of the Royalty Fees, Marketing and Technology Fees, and other amounts owed by Franchisee to Bambu arising from or relating to this Agreement. Bambu reserves the right to require the monthly Royalty Fee or the Marketing and Technology Fee payments be made on a weekly or bi-weekly basis if Franchisee does not timely or fully submit the required payment or maintain a sufficient amount in its accounts to permit Bambu to initiate a debt entry of amounts then due. 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.
- d. Franchisee shall not subordinate to any other obligation its obligation to pay the Royalty Fee or any other fee or charge hereunder.
- 12.4 Net Revenues Defined.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the Marketing and Technology Fee is payable on the first day of each month, starting the month following the commencement of operations of the Bambu shop. This means that once the franchisee begins running their Bambu location, they will start paying the Marketing and Technology Fee the following month.
However, there is an exception to this general rule. If a franchisee fails to open their shop within one year from the date of the Franchise Agreement, Bambu has the discretion to require the franchisee to start paying the monthly Royalty Fee and Marketing and Technology Fee beginning with the thirteenth month from the date of the agreement. In this case, for reconciliation purposes, the franchisee is considered to have generated monthly Net Revenues of $800 divided by 3.5 percent until the shop actually opens.
Prospective franchisees should note that the Marketing and Technology Fee is subject to annual increases, provided that Bambu gives 90 days' written notice. Franchisees should factor these potential increases into their financial planning. Additionally, Bambu reserves the right to have the monthly Marketing and Technology Fee payments made on a weekly or bi-weekly basis if the franchisee does not make timely payments or maintain sufficient funds in their accounts.