What is the 'Marketing and Technology Fund' for Bambu franchises?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
our specifications (Sections 2.1 and 15.1 of the Franchise Agreement).
Advertising and Promotion
You must pay us a Marketing and Technology Fee, which is $550 per month as of the date of this Disclosure Document, but will increase to $575 per month on January 1, 2026. The Marketing and Technology Fee commences on the first day of the first full month following the opening of your Bambū shoppe, and then is due on the first day of each month thereafter during the term of your Franchise Agreement. This amount is subject to increase each year on 90 days' written notice. We maintain a separate account designation in our accounting software for the Marketing and Technology Fee and expenses associated with marketing and technology efforts ("Marketing and Technology Fund" or "Fund"). All
company and affiliate-owned shoppes, if any, pay into the Marketing and Technology Fund on an equal percentage basis with all newly franchised shoppes. If you request it in writing to us, 60 days after the end of each year we will send you an annual unaudited financial statement for the Marketing and Technology Fund which indicates how the Marketing and Technology Fund has been spent during the previous year. Because we do not have the Fund audited, audited financial statements are not available to you.
We administer the Marketing and Technology Fund in our sole discretion. The Marketing and Technology Fund may be used for applications that promote Bambū shoppes, such as loyalty programs and other specialized applications that can add business to the shoppes, such as catering and charitable events. The Marketing and Technology Fund proceeds may also be used for researching, preparing, maintaining, administering and directing advertising and promotional materials and public relations programs, including production of commercial print, radio, television, magazine, newspaper, Internet advertising, direct response literature, direct mailings, brochures, collateral materials advertising, surveys of advertising effectiveness, Franchisee Advisory Council expenses, convention expenses, social media marketing, and other advertising or public relations expenditures, for any international, national, or regional media. We may also use the Marketing and Technology Fund to pay for the expenses related to researching, developing, implementing, servicing, and operating any technology used in any manner related to the Bambū franchise system or the Bambū shoppes, including any technologies utilized in or related to our website, search engine optimization, reporting of information for Bambū shoppes, the equipment used in Bambū shoppes, and Bambū shoppe computer systems (collectively, the "Technology"). We do not spend the Marketing and Technology Fund's money on soliciting franchisees.
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.
We may use outside advertising agencies and personnel and in-house personnel to create international, national, or regional advertising, including social media ads, ad slicks, radio and television spots and other marketing pieces and programs and we may purchase and place national advertising.
Although we intend the Marketing and Technology Fund to be of perpetual duration, we reserve the right to terminate the Marketing and Technology Fund on 30 days' notice, in which case we will distribute the funds remaining in the fund to our franchisees in proportion to their respective contributions during the preceding 12-month period. We may later reinstate the Marketing and Technology Fund upon the same terms and conditions set forth in this Disclosure Document upon 30 days' prior written notice.
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, franchisees must pay a Marketing and Technology Fee, which as of the date of the document is $550 per month, but will increase to $575 per month on January 1, 2026. This fee commences on the first day of the first full month following the opening of the Bambu shoppe and is due on the first day of each month thereafter during the term of the Franchise Agreement. This amount is subject to increase each year with 90 days' written notice. Bambu maintains a separate account designation in its accounting software for the Marketing and Technology Fee and expenses associated with marketing and technology efforts, called the "Marketing and Technology Fund".
The purpose of the Marketing and Technology Fund is to promote Bambu shoppes through various applications such as loyalty programs, catering, and charitable events. The fund may also be used for researching, preparing, maintaining, and directing advertising and promotional materials, including print, radio, television, internet advertising, direct mail, brochures, surveys, Franchisee Advisory Council expenses, convention expenses, and social media marketing. Additionally, the fund can cover expenses related to researching, developing, implementing, servicing, and operating technology used in the Bambu franchise system, including website technologies, search engine optimization, and computer systems.
Bambu has the discretion to administer the Marketing and Technology Fund and may reimburse itself for administrative costs, salaries, and overhead expenses related to the fund's administration and programs. This includes conducting market research, preparing materials, collecting contributions, providing technology services, and covering costs related to the Franchisee Advisory Council. Bambu may spend more or less than the aggregate contribution of all Bambu shoppes in any fiscal year and may borrow from lenders or invest any surplus for future use. Any remaining amounts in the fund at the end of each year accrue and are applied toward the next year's expenses. Bambu does not guarantee that advertising expenditures from the fund will directly benefit any franchisee on a pro rata basis, and the fund is not a trust fund, meaning Bambu does not owe a fiduciary duty to franchisees regarding its maintenance or administration.
During the 2024 fiscal year, 63.6 percent of the Marketing and Technology Fund was allocated to brand promotion programs, such as loyalty and gift cards and social media marketing, 32.7 percent was spent on website and franchise resource center creative and menu design photography expenses, 2.6 percent was used for software, and 1.1 percent covered miscellaneous expenses. No percentage was spent on administrative expenses, and no funds were carried over to fiscal year 2025. Additionally, no portion of the fund was retained by Bambu's affiliates or used to solicit new franchise sales.