If a payment to Bambu is late, 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 used for late payments is determined by comparing the exchange rates on the original due date and the actual payment date. Bambu will use whichever rate results in a greater amount being owed to them. This policy ensures that Bambu receives the full value of the payment, regardless of fluctuations in exchange rates between the due date and the date the payment is made.
Specifically, the exchange rate is based on the rate published in The Wall Street Journal. If The Wall Street Journal is not published on either the due date or the payment date, Bambu will use the rate from the nearest prior publication date. In the event that The Wall Street Journal ceases publication or stops publishing exchange rates, Bambu has the right to designate a successor or equivalent publication for determining the exchange rate.
For a prospective Bambu franchisee, this means that late payments could result in higher costs due to unfavorable exchange rate fluctuations. It is crucial to make payments on time to avoid these additional expenses. Franchisees should also be aware of the publication schedule of The Wall Street Journal and any potential successor publications designated by Bambu to understand how exchange rates are determined for their payments.