When does Bambu recognize the marketing and technology fee as revenue?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
The Marketing and Technology Fee shall be payable on the first day of each month starting in the month following the month in which Franchisee commences operations of its Bambū shoppe.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the Marketing and Technology Fee is payable on the first day of each month. This payment schedule begins in the month immediately following the month in which the franchisee commences operations of their Bambu shop.
This means that Bambu recognizes the Marketing and Technology Fee as revenue on a monthly basis, coinciding with the payment schedule outlined in the FDD. For a prospective franchisee, this signifies a consistent monthly expense that must be factored into their operational budget. It also implies that Bambu relies on this steady stream of income to fund its marketing and technology initiatives.
It's important to note that if a franchisee fails to open their shop within one year from the date of the Franchise Agreement, Bambu has the discretion to require the franchisee to start paying the monthly Royalty Fee and Marketing and Technology Fee beginning with the thirteenth month from the agreement date. This condition highlights the importance of adhering to the opening timeline and the financial implications of delays.