What is included in the definition of 'Net Revenues' for a Bambu franchise?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
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, Net Revenues are defined as the total gross revenue a franchisee derives from operating their Bambū shoppe. This includes all revenue from cash or credit sales, 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 a Bambu franchise specifically excludes certain items. These exclusions include 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 subtracted from the total gross revenue to arrive at Net Revenues.
Understanding this definition is crucial for Bambu franchisees because the Royalty Fee is calculated as a percentage of Net Revenues. Therefore, accurately calculating and reporting Net Revenues is essential for complying with the franchise agreement and ensuring correct Royalty Fee payments. Franchisees should carefully track all sales, taxes, refunds, and discounts to determine their Net Revenues accurately.