How long does a Bambu franchisee have to pay overdue fees or amounts after receiving notice from 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, Royalty Fee payment, or other payment due under this Agreement which is not timely paid, which late fee shall be due and payable in full upon demand.
- 12.6 Nonrefundable Fees. Except as specifically contemplated in this Agreement, all fees once paid, shall be nonrefundable in all circumstances.
13. ADVERTISING
13.1 Approval of Advertising. Franchisee shall obtain Bambu's prior written approval of all advertising or other marketing or promotional programs or materials regarding the Bambū shoppe, whether printed or digital, including, without limitation, online directory or search engine marketing, newspaper ads, flyers, brochures, magazines, coupons, direct mail pieces, specialty and novelty items, and radio, television, social media materials and videos, and in-shoppe marketing. Franchisee shall also obtain Bambu's prior written approval before using any promotional materials that vendors may provide. The proposed written or electronic advertising or a description of the marketing or promotional program shall be submitted to Bambu at least 30 days prior to publication, broadcast, posting or other use. Bambu may
withhold its approval of advertising in its sole discretion.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
The 2025 Bambu Franchise Disclosure Document does not explicitly state a specific timeframe for a franchisee to cure overdue fees or amounts after receiving notice from Bambu. However, the FDD does state that if a franchisee fails to pay the Marketing and Technology Fee, Royalty Fee, or other payments when due, they will owe interest at the highest applicable legal rate for open account credit, not to exceed 1½ percent per month.
Bambu may discontinue selling or permitting the purchase of any products to a franchisee if the franchisee is in arrears on any payment to Bambu, its affiliates, or a third-party supplier, is in default under the Franchise Agreement, or is otherwise not in compliance with the terms and conditions imposed by Bambu. Bambu may also place the franchisee's account on hold and cease delivery of products already ordered but not yet paid for.
In the event of a default, Bambu has the right to suspend the franchise, and this suspension may continue until the franchisee has corrected each default identified in the default notice from Bambu and is considered in good standing. The franchisee is responsible for covering any internal and third-party costs incurred by Bambu related to the default process, including the costs of reinstating and certifying the franchisee's Bambu store to reopen for business. Franchisees are still obligated to pay all fees during any suspension period.
Since the FDD does not specify a cure period, prospective franchisees should ask Bambu for clarification on the exact timeframe allowed to remedy overdue payments after receiving notice to avoid penalties, account holds, or suspension of services. This information is crucial for managing finances and maintaining a good standing with the franchisor.