What section of the Bambu Franchise Disclosure Document discusses Net Revenues Defined?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.4 Net Revenues Defined.
The term "Net Revenues" shall mean the total gross revenue derived by Franchisee from the operation of its Bambū shoppe, whether from sales for cash or credit, and irrespective of the collection thereof, including sales of both merchandise and services, but exclusive of all sales taxes, use taxes, gross receipts taxes, and other similar taxes added to the sales price and collected from the customer, and less any bona fide refunds, rebates, discounts, and tips.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Section 12.4 of Item 23 defines "Net Revenues." This section specifies that net revenues for a Bambu shoppe include all gross revenue derived from its operation, whether from cash or credit sales, and regardless of whether the revenue has actually been collected. This encompasses sales of both merchandise and services.
However, the definition of net revenues excludes certain items. Specifically, it excludes all sales taxes, use taxes, gross receipts taxes, and other similar taxes that are added to the sales price and collected from customers. Additionally, any bona fide refunds, rebates, discounts, and tips are also excluded from the calculation of net revenues.
This definition is important because it establishes the basis upon which Bambu calculates royalty fees and other payments owed by the franchisee. Franchisees should understand exactly what constitutes net revenue, as it directly impacts their financial obligations to Bambu. Knowing which revenues are included and excluded allows franchisees to accurately calculate and report their earnings, ensuring compliance with the franchise agreement.