What was the amount of recognition of non-refundable franchise fees for Bambu in the first period shown?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
r of Oregon Department of Consumer and Business Services Division of Finance and Corporate Securities Labor and Industries Building 350 Winter Street NE, Room 410 Salem, Oregon 97301-3881 (503) 378-4140 |
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the amortization expense for the year ended December 31, 2022, was $66,672. The document also states that estimated future amortization is expected to be $22,171 for the year ended December 31, 2025.
This indicates that Bambu recognizes revenue from non-refundable franchise fees over a period of time, rather than immediately upon receipt. The amortization expense reflects the portion of these fees that are recognized as revenue during each accounting period. For a prospective franchisee, this means that Bambu defers the recognition of initial franchise fees as revenue over a period of time.
The consistent amortization expense of $66,672 for the years 2022, 2023 and 2024 suggests a stable pattern in recognizing these fees. The estimated future amortization of $22,171 for the year ended December 31, 2025, indicates a change in the amortization schedule, potentially due to changes in the number of franchises sold or the terms of the franchise agreements. This could affect Bambu's reported revenue and profitability in future periods.