How much did Bambu receive from non-refundable deferred franchise fees in 2022?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
| Deferred Non-refundable Franchise Fees: | ||
|---|---|---|
| Balance Beginning of year | $ 1,436,817 | $ 1,658,775 |
| Deferral of non-refundable franchise fees | 345,500 | 362,500 |
| Recognition of non-refundable franchise fees | (638,862) | (584,458) |
| Balance at End of Year | $ 1,143,455 | 1,436,817 |
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the deferral of non-refundable franchise fees was $362,500 in 2022. This represents the total amount of non-refundable franchise fees that Bambu deferred during that year. These are fees that franchisees paid, but Bambu hadn't yet recognized as revenue under accounting standards. Instead, they are held as deferred revenue until the company fulfills its obligations.
The recognition of non-refundable franchise fees, which is the amount of deferred revenue that Bambu recognized as actual revenue, was $584,458 in 2022. This figure indicates how much of the previously deferred fees Bambu was able to claim as earned revenue during that year, based on having met the obligations associated with those fees.
At the beginning of 2022, the balance of deferred non-refundable franchise fees was $1,658,775. By the end of 2022, the balance was $1,436,817. This decrease reflects the difference between the fees deferred during the year and the fees recognized as revenue. The beginning balance, plus deferrals, minus recognitions, equals the ending balance. This deferred revenue accounting is a common practice in franchising, ensuring revenue recognition aligns with the delivery of services and fulfillment of obligations to the franchisee.