If a payment due to Bambu is not paid on time, how is the exchange rate determined?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
The exchange rate for calculating payments due will be the exchange rate published in The Wall Street Journal the day the payment is due.
If, for any reason whatsoever, a payment that is due to Bambu under this Agreement is not paid on the date that such payment is due, the exchange rate to be used shall be either the exchange rate published on the due date or the exchange rate published on the date that the payment is actually made, whichever results in a greater amount to Bambu.
If The Wall Street Journal is not published on the date of conversion, the applicable exchange rate will be that rate published in The Wall Street Journal on the nearest date of publication prior to the date of conversion or by a successor or equivalent publication to be designated by Bambu in the event The Wall Street Journal ceases to be published or ceases to publish the applicable exchange rates.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the exchange rate for payments due is generally determined by the rate published in The Wall Street Journal on the day the payment is due. This ensures a standard and transparent method for calculating payments.
However, if a payment is not made on time, the exchange rate used will be the greater of either the exchange rate published on the original due date or the exchange rate published on the date the payment is actually made. This provision protects Bambu from losses due to fluctuations in exchange rates when payments are late.
In the event that The Wall Street Journal is not published on the date of conversion, the applicable exchange rate will be the rate published in The Wall Street Journal on the nearest date of publication prior to the date of conversion. Bambu also retains the right to designate a successor or equivalent publication if The Wall Street Journal ceases publication or stops publishing the applicable exchange rates, providing flexibility and ensuring a reliable source for exchange rate information.