When will Bambu reconcile the Royalty Fee for the prior calendar year?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
On or before January 15th of each year, Bambu will reconcile the Royalty Fee due for the prior calendar year based on Franchisee's actual Net Revenues generated by Franchisee's Bambū shoppe in the prior calendar year minus all Royalty Fee amounts previously paid related to Franchisee's prior year operations, with any additional amounts due and payable no later than five days after completion of the reconciliation. If Franchisee is due a credit after the January 15th reconciliation, Bambu will apply the overpayments to future monthly Royalty Fees until the overpayment is fully applied.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu will reconcile the Royalty Fee for the prior calendar year on or before January 15th of each year. This reconciliation is based on the franchisee's actual Net Revenues generated by the Bambu shop in the previous calendar year, minus all Royalty Fee amounts previously paid related to the franchisee's prior year operations.
Following this reconciliation, any additional amounts due must be paid no later than five days after the reconciliation is completed. Conversely, if the franchisee is due a credit after the January 15th reconciliation, Bambu will apply the overpayments to future monthly Royalty Fees until the overpayment is fully applied.
For a prospective Bambu franchisee, this means that it's important to keep accurate records of net revenues and royalty payments throughout the year to ensure the reconciliation process goes smoothly. Franchisees should also be prepared to either pay any additional royalties due shortly after January 15th or to have any overpayments credited to future royalty fees.