What happens if a Bambu franchisee is in arrears on any payment to Bambu, its affiliates, or a third-party supplier?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
arty supplier, or otherwise in default under this Agreement. Bambu may require payments to be made at time of order or in cash on delivery ("COD"). If Franchisee is in arrears on any payment to Bambu, its affiliates or a third party supplier, is in default under this Agreement or is otherwise not in compliance with the terms and conditions imposed by Bambu, its affiliates or any third party supplier for the purchase of any products or items, Bambu or its affiliates may discontinue selling or permitting the purchase through the account of Bambu or its affiliates of any products or other items to Franchisee and may place the account of Franchisee on hold and cease (directly or through third party suppliers) the delivery of products already ordered and not yet paid for. Bambu and its affiliates shall also be entitled to interest, late fees (in accordance with Section 12.5 below) and to recover their reasonable attorneys' fees from Franchisee in connection with any legal action, arbitration or other proceeding brought by them to collect amounts owed by Franchisee for purchases of products and other items from or through Bambu or its affiliates.
- c. No Product Warranties. The products purchased by Franchisee from Bambu or its affiliated companies shall be subject only to manufacturers' warranties. BAMBU AND ITS AFFILIATED COMPANIES MAKE NO WARRANTIES, EXPRESS OR IMPLIED, REGARDING MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF ANY OF THE PRODUCTS PURCHASED BY FRANCHISEE. It is the Franchisee's responsibility to inspect all product deliveries on the day of delivery and report any inconsistencies, damage or shortages of materials directly to the applicable supplier.
- d. Changes in Products. It is understood that Bambu and its affiliates shall have the right, at any time and without notice, to add items to, or withdraw items from, the list of products, menu items or ingredients thereof; to add to or delete from the list of approved Suppliers of products and items; to revise any products and items; and to change the prices, discounts, or terms of sale of any products or items, provided, however, no such changes in prices, discounts or terms shall affect accepted orders pending with Bambu and its affiliates at the time of change.
- 10.3 Credit Card Services. Franchisee must accept credit and debit cards from customers of its Bambū shoppe for all transactions in any amount. Franchisee shall use Bambu's designated POS System and credit card merchant service provider. The Payment Card Industry ("PCI") requires all companies that process, store, or transmit credit or debit card information to protect the cardholders' information by complying with the PCI Data Security Standard ("PCI DSS").
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, if a franchisee is behind on payments to Bambu, its affiliates, or a third-party supplier, several actions may be taken. Bambu may require payments to be made at the time of order or in cash on delivery. Bambu or its affiliates may discontinue selling products to the franchisee, put the franchisee's account on hold, and stop delivering products already ordered but not yet paid for.
Additionally, Bambu and its affiliates are entitled to charge interest and late fees, as well as recover reasonable attorneys' fees, if they pursue legal action, arbitration, or other proceedings to collect the outstanding amounts. The interest rate will be the highest applicable legal rate for open account credit, but not exceeding 1½ percent per month. However, this does not obligate Bambu to accept late payments or extend credit to the franchisee.
Furthermore, if a franchisee defaults on payments to third parties, Bambu may consider it a default under the franchise agreement and pursue all available remedies. Bambu also has the right to apply any payments received from the franchisee or from third-party vendors or customers to any past due debts, including royalty fees, marketing and technology fees, or purchases from Bambu or its affiliates. Bambu can also offset any amounts the franchisee owes against any amounts Bambu might owe the franchisee.