What is Bambu's advice regarding researching similar business names before signing the Franchise Agreement?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
se of the Marks.
You should bring any uses of names or marks confusingly similar to the Marks to our attention immediately.
We are aware of other businesses that use names similar to the Marks in certain areas. Some of these other businesses have federally registered trademarks covering similar goods and services such as restaurants and coffee products. As a result, there may be superior prior rights or infringing uses that could materially affect the use of the Marks in certain areas. We strongly urge you to research this possibility, using telephone directories, local filings and other means, before you sign the Franchise Agreement or any other documents related to your business, or expending or paying any sums or making any commitments concerning your business. If you fail to do so, you may be at risk.
The Franchise Agreement does not obligate us to protect you against claims of infringement or unfair competition with respect to your use of the Marks. We reserve the right, in our sole discretion, to take any actions that we deem necessary or appropriate to protect the Marks. We pay all costs, including attorneys'
fees and court costs, associated with any litigation we decide to commence or defend on your behalf to protect the marks and your right to use them. You must cooperate with us in any litigation. Any apparent infringement of or challenge to your use of any Mark should be brought to our attention immediately and you may not communicate with any person other than us or our counsel regarding any such matter. You may not settle any claim without our written consent. We have sole discretion to take any appropriate action. We have the right to control exclusively any litigation, USPTO proceeding or any other administrative proceeding arising out of any infringement, challenge or claim relating to any Mark.
Source: Item 13 — (FDD pages 40–42)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu strongly advises prospective franchisees to research the possibility of other businesses using similar names or marks before signing the Franchise Agreement or any related documents. This research should include checking telephone directories and local filings to identify any potential conflicts. Bambu emphasizes the importance of this due diligence to avoid potential risks associated with trademark infringement.
Bambu acknowledges that other businesses in certain areas use names similar to their Marks, some of which may have federally registered trademarks for similar goods and services like restaurants and coffee products. This situation could lead to superior prior rights or infringing uses that could significantly impact a franchisee's use of the Marks in specific locations. Therefore, conducting thorough research is crucial to assess the potential for trademark conflicts.
Bambu also clarifies that the Franchise Agreement does not obligate them to protect franchisees against claims of infringement or unfair competition related to the use of the Marks. However, Bambu reserves the right to take actions they deem necessary to protect the Marks. If a franchisee fails to conduct the recommended research, they may face risks related to trademark infringement. Franchisees are advised to immediately report any uses of confusingly similar names or marks to Bambu.