For what payments does a Bambu franchisee authorize electronic fund transfers?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee authorizes Bambu and its affiliates to initiate debit entries and credit entries to Franchisee's checking, savings or other account for the payment of the Royalty Fee (defined in Section 12.1), payment of the Marketing and Technology Fee (defined in Section 12.2), the purchase of equipment and inventory, and any other amounts due from Franchisee under this Agreement or otherwise.
Contemporaneously with the execution of this Agreement and thereafter within five days of
receipt of any written request from Bambu, Franchisee shall execute and return to Bambu an additional authorization agreement for prearranged payments with account and other information to ensure the authorization agreement is current and valid. Bambu may require Franchisee to pay amounts due under this Agreement or otherwise by means in addition to or other than electronic funds transfer and Franchisee agrees to comply with Bambu's payment instructions.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, a franchisee authorizes Bambu and its affiliates to initiate debit and credit entries to the franchisee's checking, savings, or other account for specific payments. These payments include the Royalty Fee, which is 3.5% of Net Revenues, and the Marketing and Technology Fee, the amount of which is set forth in Attachment I.
In addition to these fees, the authorization extends to payments for the purchase of equipment and inventory. It also covers any other amounts due from the franchisee under the Franchise Agreement or otherwise. This broad authorization allows Bambu to collect all necessary payments electronically, streamlining the payment process.
The franchisee must also execute an additional authorization agreement for prearranged payments with account information to ensure the authorization agreement is current and valid. Bambu retains the right to require payments through other means besides electronic funds transfer, and the franchisee agrees to comply with Bambu's payment instructions.