What is the standard monthly Royalty Fee payable to Bambu?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Technology Fee"). The Marketing and Technology Fee is subject to annual increases on 90 days' written notice to Franchisee.
12.3 Payment Terms.
a. The Royalty Fee shall be payable $800 per month due on the first day of each month starting in the month following the month in which Franchisee commences operations of its Bambū shoppe. On or before July 15th of each calendar year, Bambu will reconcile the Royalty Fee due based on Franchisee's actual Net Revenues generated between January 1st and June 30th minus the monthly payments made for those months, with any additional amounts due and payable no later than five days after completion of the reconciliation. 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. If, during a relocation in accordance with Article 11, Franchisee closes its Bambū shoppe prior to opening at its new Franchised Location, for purposes of reconciling the Royalty Fees under this Section 12.3, Franchisee shall be deemed to have generated during the closure period Net Revenues on a monthly basis in an amount equal to $800 divided by 3.5 percent (prorated for any partial months). The Royalty Fee is based on your POS System sales records.
- b. The Marketing and Technology Fee shall be payable on the first day of each month starting in the month following the month in which Franchisee commences operations of its Bambū shoppe.
- c. Franchisee hereby authorizes Bambu to initiate debit entries to Franchisee's checking or savings account and authorizes any depository of such accounts to debit such accounts for the payment of the Royalty Fees, Marketing and Technology Fees, and other amounts owed by Franchisee to Bambu arising from or relating to this Agreement. Bambu reserves the right to require the monthly Royalty Fee or the Marketing and Technology Fee payments be made on a weekly or bi-weekly basis if Franchisee does not timely or fully submit the required payment or maintain a sufficient amount in its accounts to permit Bambu to initiate a debt entry of amounts then due.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the Royalty Fee is structured as a combination of a fixed monthly payment and a percentage of net revenues. Franchisees are required to pay $800 per month, due on the first day of each month, beginning the month after the Bambu shop commences operations.
In addition to the fixed monthly payment, Bambu also collects 3.5% of the franchisee's Net Revenues as part of the Royalty Fee. Bambu reconciles the Royalty Fee twice annually, comparing the fixed payments to the actual net revenues. The first reconciliation occurs on or before July 15th, covering net revenues from January 1st to June 30th. The second reconciliation takes place on or before January 15th of each year, covering the prior calendar year's net revenues. If the 3.5% of Net Revenues exceeds the fixed monthly payments, the franchisee must pay the additional amount within five days of the reconciliation. Conversely, if the fixed payments exceed the 3.5% of Net Revenues, Bambu will credit the overpayment towards future monthly Royalty Fees.
It's important to note that Bambu reserves the right to adjust the payment schedule to weekly or bi-weekly if a franchisee fails to make timely payments or maintain sufficient funds for debit entries. Furthermore, if a franchisee fails to open their shop within one year from the franchise agreement date, Bambu may require the franchisee to pay the monthly Royalty Fee and Marketing and Technology Fee starting with the thirteenth month. In this scenario, the franchisee is deemed to have generated monthly Net Revenues equal to $800 divided by 3.5 percent until the shop opens for business.