What was the amount of recognition 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 recognition of non-refundable franchise fees for the second period listed was $584,458. The table provided shows deferred non-refundable franchise fees, detailing the balance at the beginning of the year, deferral of fees, recognition of fees, and the balance at the end of the year.
For a prospective franchisee, this indicates how Bambu recognizes revenue from franchise fees over time. The "recognition of non-refundable franchise fees" represents the amount of deferred franchise fees that Bambu recognizes as revenue during that specific period. This is an important accounting practice that spreads the initial franchise fee revenue over a period, rather than recognizing it all upfront.
Understanding this accounting practice can help a franchisee better assess the financial health and revenue recognition policies of Bambu. It's also important to note that these fees are non-refundable, as stated elsewhere in the FDD, meaning that under most circumstances, a franchisee will not receive these fees back from Bambu, even if the franchise agreement is terminated.