According to Bambu, who owns the Confidential Information?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Associate recognizes and agrees that certain proprietary information relating to Bambu and its operations and the operations of Bambū shoppes ("Confidential Information") is owned by Bambu and is treated as confidential by Bambu and Franchisee, including without limitation, all proprietary information concerning Bambū shoppes; the Bambū system; the distinctive business format, plans, methods, drink and food item preparation information, recipes, menu, food preparation techniques, processes, and product formulas of a Bambū shoppe; designs; layouts;
operating procedures; all financial information of Bambu or Franchisee other than financial information filed with any government regulatory agency; marketing methods; sales and promotional methods; all nonpublic statistical information; the strategic plan, budgets and projections for Bambu; all information concerning negotiations of any kind conducted by Bambu whether pending or completed; all marketing research data and marketing plans; all information contained in the Bambū resource center materials, and any other manual or other nonpublic written information; internal lists of franchisees and customers of Bambū shoppes; and all other information which may be considered a trade secret or proprietary and such Confidential Information as may be further developed from time to time by Bambu.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu owns the Confidential Information. The FDD emphasizes that this information is treated as confidential by both Bambu and its franchisees. This includes proprietary details about Bambu shoppes, the Bambu system, business formats, plans, preparation methods for drinks and food, recipes, menus, techniques, processes, product formulas, designs, layouts, operating procedures, financial data, marketing methods, nonpublic statistical information, strategic plans, budgets, projections, negotiation information, marketing research, resource center materials, internal lists of franchisees and customers, and any trade secrets or proprietary information developed by Bambu.
Bambu's ownership of the Confidential Information means that franchisees and their associates (employees, managers, etc.) are strictly prohibited from disclosing or using this information for personal benefit or for the benefit of any entity other than Bambu or the franchisee's shoppe. This restriction applies both during and after the term of the franchise agreement. Franchisees must ensure that anyone with access to the Confidential Information, including family members, signs a Nondisclosure and Noncompetition Agreement.
This is a standard practice in franchising, as franchisors need to protect their trade secrets and proprietary information to maintain a competitive advantage and the integrity of their brand. The FDD also states that unauthorized disclosure or use of the Confidential Information would be wrongful and cause irreparable harm to Bambu. Franchisees are responsible for safeguarding this information and ensuring that their employees and affiliates do the same.
Furthermore, all financial information transmitted by the franchisee to Bambu becomes the property of Bambu as part of the Business Records. Bambu has the right to use and exploit this information without any obligation to account to the franchisee. This clause underscores the extent of Bambu's control over proprietary and operational data within the franchise system.