Can Bambu offset amounts owed to a Bambu franchisee against amounts the franchisee owes to Bambu?

According to Bambu's 2025 Franchise Disclosure Document, Bambu has the right to offset any amounts the franchisee owes to Bambu against any amounts Bambu might owe to the franchisee. This means that if a franchisee owes Bambu money for any reason, such as unpaid royalty fees, and Bambu owes the franchisee money for any reason, Bambu can reduce the amount it owes the franchisee by the amount the franchisee owes Bambu.

This right of offset can impact a franchisee in various situations. For instance, if Bambu owes a franchisee a refund or credit, but the franchisee has outstanding royalty or marketing fees, Bambu can deduct those fees from the refund amount. This could affect the franchisee's cash flow and financial planning, as they may not receive the full amount they were expecting from Bambu.

It is important for prospective Bambu franchisees to understand this offset provision and its potential implications. Franchisees should maintain accurate records of all payments and amounts owed to and from Bambu to ensure transparency and avoid disputes. Franchisees should also clarify with Bambu the specific circumstances under which offsets will be applied and the procedures for resolving any discrepancies.