How soon after the reconciliation of the Royalty Fee will Bambu withdraw any additional amounts due?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
On or before July 15th, we will reconcile the Royalty Fee due based on your actual Net Revenues generated between January 1st and June 30th minus the monthly payments made for those months, and we will withdraw any additional amounts due no later than five days after completion of the reconciliation.
On or before January 15th of the following year, we will reconcile the Royalty Fee due for the prior calendar year based on your actual Net Revenues generated by your Bambū shoppe in the prior calendar year minus all Royalty Fee amounts previously paid related to your prior year operations, and we will withdraw any additional amounts due no later than five days after completion of the reconciliation.
If you are due a credit after the January 15th reconciliation, we will apply the overpayments to future monthly Royalty Fees until the overpayment is fully applied.
Source: Item 6 — OTHER FEES (FDD pages 14–18)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the timing of additional royalty fee withdrawals depends on the reconciliation period. For the period between January 1st and June 30th, Bambu will reconcile the royalty fee due by July 15th. If there are additional amounts due after this reconciliation, Bambu will withdraw those amounts no later than five days after the reconciliation is completed.
Similarly, for the entire prior calendar year, Bambu will reconcile the royalty fee by January 15th of the following year. Any additional amounts owed after this reconciliation will also be withdrawn no later than five days after the reconciliation.
For a prospective franchisee, this means it is crucial to maintain accurate sales records and reconcile them with Bambu's records to avoid discrepancies. Franchisees should be prepared for potential additional royalty fee withdrawals shortly after these reconciliation dates. Conversely, if a 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.