On what page of the Bambu FDD can I find information about late payments?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: Receipts]
Bambu reserves the right to require the monthly Royalty Fee or the Marketing and Technology Fee payments be made on a weekly or bi-weekly basis if Franchisee does not timely or fully submit the required payment or maintain a sufficient amount in its accounts to permit Bambu to initiate a debt entry of amounts then due.
Notwithstanding any designation by Franchisee, Bambu shall have sole discretion to apply any payments by Franchisee, and any amounts received by Bambu on Franchisee's behalf from third party vendors or customers to any of Franchisee's past due indebtedness to Bambu for the Royalty Fee, the Marketing and Technology Fee, purchases from Bambu or its affiliates, interest or any other indebtedness.
Franchisee acknowledges that Bambu has the right to set-off any amounts Franchisee may owe to Bambu against any amounts Bambu might owe to Franchisee.
- d.
Franchisee shall not subordinate to any other obligation its obligation to pay the Royalty Fee or any other fee or charge hereunder.
- 12.4 Net Revenues Defined.
The term "Net Revenues" shall mean the total gross revenue derived by Franchisee from the operation of its Bambū shoppe, whether from sales for cash or credit, and irrespective of the collection thereof, including sales of both merchandise and services, but exclusive of all sales taxes, use taxes, gross receipts taxes, and other similar 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.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, information regarding late payments can be found in Item 23. Specifically, Section 12.5 discusses late payments, detailing the interest and late fee implications for franchisees. Additionally, page 73 and 85 contain information regarding late payments.
If a Bambu franchisee fails to make timely payments for the Marketing and Technology Fee, Royalty Fee, or other amounts due, they will incur interest at the highest applicable legal rate for open account credit, capped at 1½ percent per month. Bambu also reserves the right to assess a $50 late charge for any overdue Marketing and Technology Fee or Royalty Fee payment.
Bambu retains the discretion to demand weekly or bi-weekly payments of the Royalty Fee or the Marketing and Technology Fee if a franchisee consistently fails to make timely payments or maintain sufficient funds for debt entries. However, the FDD states that Section 12.5 does not obligate Bambu to accept late payments or extend credit to finance the shoppe's operations.