When does the Franchisee begin paying the monthly Royalty Fee to Bambu?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the franchisee must pay a monthly royalty fee of $800 starting the month following the commencement of operations of their Bambu shop. Bambu will reconcile the royalty fee due based on the franchisee's actual net revenues generated between January 1st and June 30th on or before July 15th of each calendar year. Any additional amounts are due no later than five days after the reconciliation is complete.
Bambu will reconcile the royalty fee due for the prior calendar year based on the franchisee's actual net revenues generated by the Bambu shop in the prior calendar year on or before January 15th of each year. Any additional amounts are due no later than five days after the reconciliation is complete. If the 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 the franchisee fails to open their shop within one year from the date of the Franchise Agreement, Bambu can require the franchisee to pay the monthly royalty fee and marketing and technology fee starting with the thirteenth month from the date of the agreement. For reconciliation purposes, the franchisee will be considered to have generated net revenues on a monthly basis equal to $800 divided by 3.5 percent until the shop opens for business. If the franchisee closes their Bambu shop during a relocation, they will continue to be responsible for royalty fees during the closure period. For reconciliation, the franchisee will be deemed to have generated monthly net revenues equal to $800 divided by 3.5 percent, prorated for any partial months.