What was the amount of deferral of non-refundable franchise fees for Bambu in the first period shown?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
| Deferred Non-refundable Franchise Fees: | ||
|---|---|---|
| Balance Beginning of year | $ 1,436,817 | $ 1,658,775 |
| Deferral of non-refundable franchise fees | 345,500 | 362,500 |
| Recognition of non-refundable franchise fees | (638,862) | (584,458) |
| Balance at End of Year | $ 1,143,455 | 1,436,817 |
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the deferral of non-refundable franchise fees was $345,500 in the first period shown. The table in Item 23 of the FDD also shows the beginning balance of deferred non-refundable franchise fees, the recognition of these fees, and the balance at the end of the year.
Specifically, the table provides a snapshot of how Bambu manages its non-refundable franchise fees over time. The "Deferral of non-refundable franchise fees" line indicates the amount of new franchise fees that Bambu deferred during that year. This deferral might be related to specific conditions or obligations that Bambu needs to fulfill before recognizing the fees as revenue.
The "Recognition of non-refundable franchise fees" line shows how much of the previously deferred fees Bambu recognized as revenue during the year. This recognition typically occurs as Bambu fulfills its obligations to the franchisee, such as providing training, site selection assistance, or other pre-opening support. The beginning and ending balances provide a clear picture of the total deferred revenue Bambu is holding at any given time. This information is useful for prospective franchisees to understand how Bambu accounts for franchise fees and when it recognizes revenue.