Does Bambu have the right to set-off any amounts Franchisee may owe?

According to Bambu's 2025 Franchise Disclosure Document, Bambu has the right to set off any amounts the franchisee owes to Bambu against any amounts Bambu might owe to the franchisee. This means that if a franchisee owes Bambu money for any reason, such as unpaid royalties or supplies, Bambu can deduct that amount from any payments it owes to the franchisee, such as refunds or rebates.

This right of set-off is a common practice in franchising and other business relationships. It protects Bambu by allowing it to recover debts quickly and efficiently without having to pursue legal action. For a prospective franchisee, this means they need to be aware that any debts owed to Bambu can be immediately deducted from any payments they might expect to receive from Bambu.

Additionally, in the event of termination or expiration of the franchise agreement, Bambu has the option to purchase the Bambu shop. The purchase price for the assets will be adjusted by setting off any amount then owing by the franchisee to Bambu, including any amounts paid by Bambu to cure the franchisee's defaults with third parties such as landlords. This further emphasizes Bambu's ability to recoup outstanding debts from the franchisee, even during the termination process.