What was the amount of deferral of non-refundable franchise fees for Bambu in the second 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 $362,500 in the second period presented in the table. The table provides a summary of deferred non-refundable franchise fees, showing the balance at the beginning of the year, the deferral of fees, the recognition of fees, and the balance at the end of the year for two periods.
This information is relevant for prospective franchisees as it provides insight into how Bambu accounts for franchise fees. Deferred revenue typically represents cash received for services or products that have not yet been delivered or earned. In this case, it indicates the amount of franchise fees that Bambu has collected but not yet recognized as revenue.
Understanding the deferral and recognition of franchise fees can help a franchisee assess the financial health and accounting practices of Bambu. It is important to note that the recognition of these fees as revenue often depends on the fulfillment of obligations by Bambu, such as providing training and support to the franchisee.