Can a Bambu Franchisee subordinate their obligation to pay the Royalty Fee?

According to Bambu's 2025 Franchise Disclosure Document, a franchisee is explicitly prohibited from subordinating their obligation to pay the Royalty Fee or any other fees or charges outlined in the agreement. This means a Bambu franchisee cannot prioritize other financial obligations over their payments to Bambu.

This requirement ensures that Bambu receives its ongoing revenue stream, which is crucial for the franchisor's operations and support services. For a prospective franchisee, this signifies a strict financial obligation that must be consistently met to remain in good standing with Bambu. Failure to meet this obligation could lead to penalties, loss of good standing, or even termination of the franchise agreement.

This stipulation is fairly standard in franchising, as franchisors rely on royalty payments to fund their ongoing support, marketing, and development efforts. Franchisees should carefully consider their financial capacity and ensure they can consistently meet this obligation before entering into a franchise agreement with Bambu.