What is the monthly late charge assessed by Bambu for late payments?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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.
Bambu and its affiliates shall also be entitled to interest, late fees (in accordance with Section 12.5 below) and to recover their reasonable attorneys' fees from Franchisee in connection with any legal action, arbitration or other proceeding brought by them to collect amounts owed by Franchisee for purchases of products and other items from or through Bambu or its affiliates.
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 make timely payments for the Marketing and Technology Fee, Royalty Fee, or any other payments due, Bambu has the right to automatically assess a $50 late charge each month. This late fee is due and payable in full upon demand.
In addition to the $50 late charge, Bambu also charges interest on late payments. The interest rate is the highest applicable legal rate for open account credit, but it will not exceed 1½ percent per month. This interest charge applies if the franchisee does not have sufficient funds in its account or otherwise fails to make payments on time.
It is important to note that these late payment terms do not obligate Bambu to accept late payments or extend credit to the franchisee. Bambu retains the right to pursue other remedies for non-payment, including legal action, and can recover reasonable attorney's fees associated with collecting overdue amounts.