Can an Associate of a Bambu franchise divert employees from Bambu, the Franchisee, or other franchisees to a Competitive Business?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
hisee the Confidential Information only to the extent necessary for such employees, agents or representatives to carry out their intended function.
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- Noncompetition Covenant. Associate covenants and agrees that, during the term of his or her Affiliation, except in conjunction with Franchisee's Bambū shoppe in a manner authorized by Bambu and Franchisee, Associate shall not, either directly or indirectly through any member of Associate's immediate family, separate business entity, or otherwise:
- (a) have any direct or indirect controlling interest as a disclosed or beneficial owner in a Competitive Business, defined below;
- (b) perform services as a director, officer, manager, employee, consultant, representative, agent or otherwise for a Competitive Business;
- (c) divert or attempt to divert any business related to Bambu, Franchisee or any other franchisee of Bambu to any Competitive Business by direct inducement or otherwise;
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, an Associate is restricted from diverting employees. During the term of their affiliation, an Associate cannot divert or attempt to divert the employment of any employee or representative of Bambu, the Franchisee, or any other Bambu franchisee to any Competitive Business by any direct inducement or otherwise.
This restriction is part of a noncompetition covenant that the Associate agrees to. This covenant aims to protect Bambu's business interests by preventing Associates from using their access and knowledge gained through their affiliation to harm the franchise system. A "Competitive Business" is defined as any business deriving more than 10 percent of its gross receipts from the preparation or sale of teas, fruit dessert drinks, coffee, or other products currently or in the future offered by Bambu.
These restrictions are typical in franchising to protect the brand and prevent unfair competition. The agreement also specifies that even after the termination of the Associate's affiliation, there are restrictions in place for a period of two years within a 10-mile radius of the franchised location or any other Bambu shoppe. This post-termination covenant further safeguards Bambu's interests by preventing former Associates from immediately leveraging their experience to compete with the franchise.