Who is responsible for the costs associated with currency transfer and exchange for payments to Bambu?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall be solely responsible for the payment of any costs and charges incurred in connection with the transfer and exchange of currency over and above any fees due or paid.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the franchisee is responsible for covering the costs associated with currency transfer and exchange when making payments to Bambu. This means that any fees or charges incurred during the process of converting currency and transferring it to Bambu are the sole responsibility of the franchisee.
This condition is significant for prospective franchisees, especially those operating or planning to operate outside of the United States, as all payments to Bambu, unless otherwise stated, must be made in United States Dollars. The franchisee will need to factor in these potential costs when budgeting and forecasting expenses. These costs are in addition to any fees or payments already due to Bambu under the franchise agreement.
The exchange rate used for calculating payments will be the rate published in The Wall Street Journal on the day the payment is due. However, if a payment is not made on time, Bambu will use the exchange rate on the due date or the actual payment date, whichever results in a greater amount for Bambu. This clause incentivizes timely payments to avoid additional costs due to currency fluctuations.
Franchisees should carefully consider these currency exchange and transfer costs, as they can fluctuate and impact the overall profitability of their Bambu franchise. It is advisable to consult with financial advisors to understand the potential implications and to develop strategies for managing these expenses effectively.