What is the interest rate charged on late payments to Bambu?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
taxes added to the sales price and collected from the customer, and less any bona fide refunds, rebates, discounts, and tips.
- 12.5 Late Payments. In the event that Franchisee fails to have sufficient funds in its account or otherwise fails to pay the Marketing and Technology Fee, Royalty Fee, or other payments due to Bambu as of the date due, Franchisee shall owe in addition to the Marketing and Technology Fee, Royalty Fee, or other amounts due, interest at the highest applicable legal rate for open account credit, not to exceed 1½ percent per month. Franchisee acknowledges that this Section 12.5 shall not constitute Bambu's or its affiliates' agreement to accept such payments after they are due or a commitment to extend credit to or otherwise finance operations of the shoppe. In no event shall Franchisee be required to pay interest at a rate greater than the maximum interest rate permitted by applicable law. Bambu reserves the right to automatically assess Franchisee a monthly $50 late charge for any Marketing and Technology Fee payment, R
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, if a franchisee fails to pay the Marketing and Technology Fee, Royalty Fee, or other payments by the due date, they will owe interest on the overdue amount. This interest is calculated at the highest applicable legal rate for open account credit, but it will not exceed 1½ percent per month.
This means that a Bambu franchisee could face a significant additional cost for late payments, on top of the original amount owed. For example, if a franchisee owes $1,000 and is late on the payment, they could be charged up to $15 per month (1.5% of $1,000) until the balance is paid. This could quickly add up and impact the franchisee's profitability.
Bambu also specifies that this late payment clause does not obligate them to accept late payments or extend credit to the franchisee. Furthermore, Bambu can also assess a $50 late fee for any late Marketing and Technology Fee or Royalty Fee payment. Franchisees should, therefore, prioritize timely payments to avoid these extra charges and maintain a good financial standing with Bambu.