How are merchant fees for a Bambu franchise processed and paid?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Merchant fees are processed and paid separately per the terms of our approved providers service agreement.
You must accept credit and debit cards from customers of your Bambū shoppe. Our approved POS System has the software capabilities to manage credit card processing fees being charged to the customer. However, you may not charge your customers any additional fees or service charges if they elect to pay by credit or debit card. 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"). Therefore, you must be PCI compliant by following and adhering to the then-current PCI DSS, currently found at www.pcisecuritystandards.org, or any similar or subsequent standard for the protection of cardholder data throughout the term of your Franchise Agreement. PCI mandates the PCI DSS compliance.
You must purchase a point-of-sale system meeting our specifications, which is currently the Square bundled system (the "POS System"). It includes our approved third-party applications. The POS System has the capability of facilitating our system-wide customer loyalty/rewards program; employee scheduling, time tracking, and inventory application; and third-party delivery services; and has built in merchant software for both shoppe and customer facing ordering, credit card processing and customer tipping.
The cost of purchasing a single POS System with two printers and related equipment and technology for your Bambū shoppe is currently $2,500. The typical cost of maintenance updates, upgrades and support is currently less than $100 per month.
We can require you to acquire different or additional hardware, software, and possible subscriptions to online applications, including different POS System hardware, software, and applications, meeting our minimum specifications on 90 days' notice.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 28–38)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, merchant fees are processed and paid separately according to the terms of the approved provider's service agreement. Bambu franchisees must purchase a point-of-sale (POS) system that meets Bambu's specifications; currently, this is the Square bundled system. This system includes approved third-party applications and has built-in merchant software for both the store and customer-facing operations, including credit card processing and customer tipping.
The POS system that Bambu requires has the capability to manage credit card processing fees charged to the customer. However, franchisees cannot charge customers additional fees for paying with credit or debit cards. The cost of purchasing the POS system, including two printers and related equipment, is currently $2,500, with ongoing maintenance, updates, and support typically costing less than $100 per month.
Franchisees must also comply with the Payment Card Industry (PCI) Data Security Standard (DSS) to protect cardholder information. This compliance is mandated by PCI and requires adherence to the then-current PCI DSS, as found on the PCI Security Standards Council website. Bambu retains the right to require franchisees to acquire different or additional hardware, software, and subscriptions to online applications, including different POS systems, with 90 days' notice.