What was the total amount of franchise fees collected by Bambu in 2024?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Reese CPA LLC consents to the use in the Franchise Disclosure Document issued by Bambu Franchising, LLC ("Franchisor") on March 31, 2025, as it may be amended, of our report dated, March 25, 2025, relating to the financial statements of Franchisor for the period ending December 31, 2024.
The Franchisor's audited financial statements for the most recently ended fiscal year are included as Attachment J to the Franchise Disclosure Document.
Each franchise agreement is comprised of several performance obligations. The Company identifies those performance obligations, determines the contract price for each obligation, allocates the transaction price to each performance obligation and recognizes revenue when the Company has satisfied the performance obligation by transferring control of the good or service to the franchisee.
When a qualified party purchases a Bambu franchise, the Company grants the franchisee the right to operate the franchised business in a designated territory and to use the proprietary methods, techniques, trade dress, trademarks, and logos ("symbolic intellectual property" or "IP"). Revenues related to the designated territory and IP are continuing monthly royalty fees are defined in the franchise agreement and are fixed amount per month. Revenue from continuing monthly royalty fees is billed monthly and is recognized as revenue when earned as a point in time revenue. These revenues will be used to continue the development of the Company's brand, the franchise system and provide on-going support for the Company's franchisees.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the exact total amount of franchise fees collected by Bambu in 2024 is not explicitly stated. However, the FDD does include financial statements and an auditor's consent letter for the period ending December 31, 2024. Reese CPA LLC consented to the use of their report dated March 25, 2025, relating to the financial statements of Bambu for the period ending December 31, 2024.
Item 23 discusses 'Receipts' and revenue recognition, noting that Bambu recognizes revenues under ASC 606, primarily through franchise agreements. The revenue recognition involves identifying performance obligations, determining contract prices, allocating transaction prices, and recognizing revenue when control of goods/services transfers to the franchisee. The FDD mentions that when a franchisee purchases a Bambu franchise, they are granted the right to operate the franchised business in a designated territory and use Bambu's intellectual property. Continuing monthly royalty fees are defined in the franchise agreement as a fixed amount per month and are recognized as revenue when earned.
To determine the total franchise fees collected, a prospective franchisee would need to review the complete audited financial statements included as Attachment J to the Franchise Disclosure Document. This level of detail is not provided in the excerpts. It would be prudent to ask Bambu for a detailed breakdown of franchise fee revenue for 2024 during the due diligence process to fully understand the franchisor's revenue streams.