How is the Marketing and Technology Fund accounted for in relation to Bambu's other funds?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
of each fiscal year, an unaudited financial statement which indicates how the Marketing and Technology Fund has been spent in the prior year.
- c. The Marketing and Technology Fund shall be accounted for separately from Bambu's other funds and shall not be used to defray any of Bambu's general operating expenses, except for such reasonable administrative costs, salaries and overhead as Bambu may incur in activities related to the administration of the Marketing and Technology Fund and its marketing programs, including, without limitation, conducting market research, preparing material, incurring related accounting and legal expenses, collecting and accounting for Marketing and Technology Fund contributions and all costs and expenses related to the Advisory Council, if any. Bambu may spend in any fiscal year an amount greater or less than the aggregate contribution of all Bambū shoppes to the Marketing and Technology Fund in that year and the Marketing
and Technology Fund may borrow from Bambu or other lenders to cover deficits or cause the Marketing and Technology Fund to invest any surplus for future use. The Marketing and Technology Fund may be incorporated or operated through an entity separate from Bambu at such time as Bambu deems appropriate, and such successor entity shall have all rights and duties of Bambu pursuant to this Section 13.3.
- d. Franchisee understands and acknowledges that the Marketing and Technology Fund is intended to maximize recognition of the Marks and patronage of all Bambū shoppes. Although Bambu will endeavor to utilize the Marketing and Technology Fund to develop advertising and marketing materials and programs and to place advertising that will benefit all Bambū shoppes, Bambu undertakes no obligation to ensure that expenditures by the Marketing and Technology Fund in or affecting any geographic area are proportionate or equivalent to the contributions by Bambū shoppes operating in that geographic area or that any Bambū shoppe will benefit directly from or in proportion to its contribution to the development of advertising and marketing materials or the placement of advertising. The Marketing and Technology Fund is not a trust fund, and Bambu does not owe Franchisee a fiduciary duty with respect to the maintenance, direction or administration of the Marketing and Technology Fund.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the Marketing and Technology Fund is accounted for separately from Bambu's other funds. Bambu will maintain a separate account designation in its accounting software for the Marketing and Technology Fees and expenses associated with marketing and technology efforts. This fund will not be used to cover Bambu's general operating expenses, except for reasonable administrative costs, salaries, and overhead incurred in managing the fund and its marketing programs. These expenses can include market research, preparing materials, accounting and legal fees, collecting contributions, and costs related to the Advisory Council.
Bambu has the flexibility to spend more or less than the total contributions from all Bambu shops in any given fiscal year. To manage potential deficits, the Marketing and Technology Fund may borrow from Bambu or other lenders. Conversely, any surplus funds may be invested for future use. Bambu also retains the option to incorporate the Marketing and Technology Fund as a separate entity at a later time, which would then assume all rights and responsibilities related to the fund.
It's important to note that the Marketing and Technology Fund is not considered a trust fund, and Bambu does not owe franchisees a fiduciary duty regarding its maintenance, direction, or administration. Bambu also assumes no direct or indirect liability to franchisees concerning the fund, except as explicitly stated in the franchise agreement. Bambu reserves the right to terminate the Marketing and Technology Fund with 30 days' written notice to franchisees. In the event of termination, any unspent funds will be distributed to franchisees in proportion to their contributions over the preceding 12-month period. Bambu also retains the right to reinstate the fund under the same terms with 30 days' written notice.