What is Bambu's obligation regarding accounting for the Marketing and Technology Fund?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Upon the written request of Franchisee, Bambu will make available to Franchisee, no later than 60 days after the end of each fiscal year, an unaudited financial statement which indicates how the Marketing and Technology Fund has been spent in the prior year.
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.
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, Bambu will maintain a separate account designation in its accounting software for the Marketing and Technology Fees and expenses. Upon written request from a franchisee, Bambu will provide an unaudited financial statement within 60 days after the end of each fiscal year, detailing how the Marketing and Technology Fund was spent in the prior year.
The Marketing and Technology Fund must be accounted for separately from Bambu's other funds. Bambu is allowed to use the fund to cover reasonable administrative costs, salaries, and overhead related to administering 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 discretion to spend more or less than the total contributions from all Bambu shops in any given fiscal year. The fund can borrow money or invest surpluses for future use. Bambu also has the option to incorporate the fund or operate it through a separate entity, which would then assume all rights and duties related to the fund. However, the Marketing and Technology Fund is not a trust fund, and Bambu does not owe franchisees a fiduciary duty regarding its maintenance, direction, or administration.