What is the Royalty Fee based on for a Bambu franchise?

According to Bambu's 2025 Franchise Disclosure Document, the Royalty Fee is based on the Point of Sale (POS) System sales records. This means that Bambu will calculate the royalty fee owed by the franchisee based on the sales data recorded in the POS system at their location.

Bambu reconciles the Royalty Fee due based on the franchisee's actual Net Revenues generated. This reconciliation occurs twice a year. For the period between January 1st and June 30th, reconciliation happens on or before July 15th. For the prior calendar year, reconciliation occurs on or before January 15th of the following year. Any additional amounts due are withdrawn no later than five days after the completion of the reconciliation. If a credit is due after the January 15th reconciliation, Bambu will apply the overpayments to future monthly Royalty Fees until the overpayment is fully applied.

If a Bambu franchise closes during a relocation, the franchisee must pay a monthly Royalty Fee of $800 during the closure period. For reconciliation purposes, the franchisee is deemed to have generated Net Revenues on a monthly basis equal to $800 divided by 3.5 percent, prorated for any partial months. This ensures that Bambu continues to receive a royalty payment even when the location is temporarily closed for relocation.