What are the primary sources of Bambu's franchisee receivables?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, franchisee receivables primarily stem from several sources. These include royalty fees, marketing and technology fees, and purchases from Bambu or its affiliates. Additionally, receivables can arise from interest on late payments or any other form of indebtedness the franchisee incurs. Bambu retains the discretion to apply payments received from franchisees or third parties to any outstanding debts, including past due royalty fees, marketing and technology fees, or purchases.
Bambu also has the right to require that monthly Royalty Fee or the Marketing and Technology Fee payments be made on a weekly or bi-weekly basis if a 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. This measure ensures more consistent and prompt payments, reducing the risk of accumulating receivables. Furthermore, Bambu can set off any amounts the franchisee owes against any amounts Bambu might owe to the franchisee, providing a mechanism to settle debts efficiently.
For a prospective Bambu franchisee, understanding these receivable sources is crucial for financial planning. Franchisees need to be aware of all potential fees and payment obligations to Bambu, as well as the implications of late payments. The ability of Bambu to alter payment schedules and apply payments at its discretion highlights the importance of maintaining good financial standing with the franchisor. Franchisees should also note that they cannot subordinate their obligation to pay the Royalty Fee or any other fee or charge to any other obligation.