Can the Bambu Marketing and Technology Fund borrow money?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
We may reimburse ourselves from the Marketing and Technology Fund for administrative costs, salaries and overhead expenses related to the administration of the Marketing and Technology Fund and its programs, including conducting market research, preparing material, collecting and accounting for Marketing and Technology Fund contributions, providing any services related to any Technology, and all costs and expenses related to the Franchisee Advisory Council discussed below. In any fiscal year we may spend an amount greater or less than the aggregate contribution of all Bambū shoppes to the Marketing and Technology Fund in that year. The Marketing and Technology Fund may borrow from us or other lenders to cover deficits or cause the Marketing and Technology Fund to invest any surplus for future use. Any amounts remaining in the Marketing and Technology Fund at the end of each year accrue and we apply them toward the next year's expenses. We do not guarantee that advertising expenditures from the Marketing and Technology Fund will benefit you or any other franchisee directly or on a pro rata basis. The Marketing and Technology Fund is not a trust fund, and we do not owe a fiduciary duty to you with respect to the maintenance, direction, or administration of the Fund. We assume no other direct or indirect liability or obligation to you for collecting amounts due to any marketing account or for maintaining, directing or administering any advertising account.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 28–38)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the Marketing and Technology Fund can borrow money. Specifically, the fund may borrow from Bambu itself or other lenders to cover any deficits. This provides Bambu with flexibility in managing the fund's finances, ensuring that marketing and technology initiatives can continue even if current contributions are insufficient.
Additionally, any surplus funds remaining in the Marketing and Technology Fund at the end of each year are carried over and applied towards the next year's expenses. This indicates that Bambu aims to manage the fund responsibly, using accumulated surpluses to offset future costs rather than distributing them immediately.
It's important to note that Bambu does not guarantee that advertising expenditures from the Marketing and Technology Fund will directly benefit each franchisee on a pro rata basis. Furthermore, the document states that the Marketing and Technology Fund is not a trust fund, and Bambu does not owe a fiduciary duty to franchisees regarding the fund's maintenance, direction, or administration. This means that while franchisees contribute to the fund, Bambu has significant discretion in how the funds are used, and franchisees have limited recourse if they disagree with the franchisor's decisions.