When is the monthly Royalty Fee due to Bambu?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Technology Fee"). The Marketing and Technology Fee is subject to annual increases on 90 days' written notice to Franchisee.
12.3 Payment Terms.
a. The Royalty Fee shall be payable $800 per month due on the first day of each month starting in the month following the month in which Franchisee commences operations of its Bambū shoppe. On or before July 15th of each calendar year, Bambu will reconcile the Royalty Fee due based on Franchisee's actual Net Revenues generated between January 1st and June 30th minus the monthly payments made for those months, with any additional amounts due and payable no later than five days after completion of the reconciliation. On or before January 15th of each year, Bambu will reconcile the Royalty Fee due for the prior calendar year based on Franchisee's actual Net Revenues generated by Franchisee's Bambū shoppe in the prior calendar year minus all Royalty Fee amounts previously paid related to Franchisee's prior year operations, with any additional amounts due and payable no later than five days after completion of the reconciliation. If Franchisee is due a cr
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the Royalty Fee of $800 is due on the first day of each month. This payment schedule begins in the month immediately following the commencement of operations of the Bambū shoppe.
Bambu also reconciles the Royalty Fee based on the franchisee's actual Net Revenues. For the period of January 1st to June 30th, reconciliation occurs on or before July 15th of each calendar year. For the prior calendar year, reconciliation occurs on or before January 15th of each year. Any additional amounts owed after reconciliation are due within five days of completion of the reconciliation. If a franchisee is due a credit after the January 15th reconciliation, Bambu will apply the overpayments to future monthly Royalty Fees until the credit is fully used.
It's important to note that Bambu reserves the right to require Royalty Fee payments on a weekly or bi-weekly basis if the franchisee does not make timely payments or maintain sufficient funds in its account to cover the debit entries. Additionally, the Royalty Fee obligation cannot be subordinated to any other financial obligations of the franchisee.