Where can I find the definition of Net Revenues for a Bambu franchise?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.4 Net Revenues Defined.
The term "Net Revenues" shall mean the total gross revenue derived by Franchisee from the operation of its Bambū shoppe, whether from sales for cash or credit, and irrespective of the collection thereof, including sales of both merchandise and services, but exclusive of all sales taxes, use taxes, gross receipts taxes, and other similar taxes added to the sales price and collected from the customer, and less any bona fide refunds, rebates, discounts, and tips.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the definition of "Net Revenues" can be found in Section 12.4. The document specifies that Net Revenues include the total gross revenue derived from the operation of the Bambu shop, whether the sales are for cash or credit, and regardless of whether the revenue has been collected. This includes revenue from both merchandise and services.
However, the definition of Net Revenues for a Bambu franchise excludes certain items. Specifically, it excludes all sales taxes, use taxes, gross receipts taxes, and other similar taxes that are added to the sales price and collected from customers. Additionally, any bona fide refunds, rebates, discounts, and tips are also excluded from the calculation of Net Revenues.
Understanding this definition is crucial because the royalty fee, which is 3.5% according to Section 12.1, is calculated based on Net Revenues. Therefore, accurately calculating Net Revenues is essential for determining the correct royalty fee payable to Bambu. Franchisees should ensure they understand these inclusions and exclusions to properly report their revenue and avoid discrepancies in royalty payments.