How does Bambu define 'Net Revenues' for the purpose of calculating Royalty Fees?

According to Bambu's 2025 Franchise Disclosure Document, Net Revenues are defined as the total gross revenue a franchisee derives from operating their Bambu shop. This includes all sales, whether they are cash or credit transactions, and regardless of whether the revenue has actually been collected. The definition encompasses revenue from both merchandise and services.

However, the definition of Net Revenues for Bambu excludes certain items. Specifically, it does not include sales taxes, use taxes, gross receipts taxes, or other similar taxes that are added to the sales price and collected from customers. Additionally, any bona fide refunds, rebates, discounts, and tips are subtracted from the gross revenue to arrive at Net Revenues.

For a prospective Bambu franchisee, this definition is important because the Royalty Fee, which is 3.5% according to section 12.1, is calculated based on this Net Revenues figure. Understanding exactly what constitutes Net Revenues ensures accurate calculation and payment of royalties to Bambu. Franchisees should keep detailed records of all sales and deductions to properly determine their Net Revenues and, consequently, their Royalty Fee obligations.