What are the payment options available to Bambu for the purchase price of the Bambu shoppe?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Bambu will pay the purchase price in full at the closing, or, at its option, in 24 equal consecutive monthly installments with interest at a rate equal to the prime lending rate as of the closing at Bambu's primary bank.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu has two options for paying the purchase price of a Bambu shoppe if they exercise their right to purchase it. Bambu can either pay the full purchase price in cash at the closing or finance the purchase.
If Bambu chooses to finance the purchase, they can pay in 24 equal consecutive monthly installments. The interest rate applied to these installments will be equal to the prime lending rate at Bambu's primary bank as of the closing date.
This provides Bambu with flexibility in managing the purchase. The option to pay in installments could be beneficial for Bambu's cash flow management, while paying in full at closing would avoid interest charges. For a franchisee, this means that if Bambu decides to purchase their shoppe, they may receive the payment over a period of up to two years rather than a lump sum at closing, which could affect their financial planning.