Is the Bambu Marketing and Technology Fund considered a trust fund?

According to Bambu's 2025 Franchise Disclosure Document, the Marketing and Technology Fund is explicitly stated as not being a trust fund. Bambu also clarifies that they do not owe a fiduciary duty to franchisees regarding the maintenance, direction, or administration of the fund. This means that Bambu has considerable discretion in how the fund is managed and spent.

Bambu may use the Marketing and Technology Fund for various purposes, including brand promotion programs, website and resource center development, menu design, and technology-related expenses. For example, in 2024, a significant portion of the fund was allocated to brand promotion (63.6 percent) and website/resource center development (32.7 percent). Franchisees contribute to this fund through a monthly Marketing and Technology Fee, which is $550 as of the FDD date and scheduled to increase to $575 on January 1, 2026.

While Bambu intends for the Marketing and Technology Fund to be perpetual, they retain the right to terminate it with 30 days' notice. In the event of termination, the remaining funds will be distributed to franchisees in proportion to their contributions over the preceding 12-month period. Bambu does not guarantee that advertising expenditures from the fund will directly benefit each franchisee on a pro rata basis.

Prospective franchisees should understand that Bambu has significant control over the Marketing and Technology Fund and is not legally bound to manage it as a trust. Franchisees are entitled to request an annual unaudited financial statement of the fund, allowing them to see how the money was spent. However, audited statements are not available, which limits the level of financial scrutiny franchisees can exercise.