Who bears the cost of any action taken by Bambu against trademark infringement?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall notify Bambu in writing of any possible infringement or illegal use by others of a trademark the same as or confusingly similar to the Marks which may come to its attention.
Franchisee acknowledges that Bambu shall have the right, in its sole discretion, to determine whether any action will be taken on account of any possible infringement or illegal use.
Bambu may commence or prosecute such action in Bambu's own name and may join Franchisee as a party to the action if Bambu determines it to be reasonably necessary for the continued protection and quality control of the Marks and Bambū system.
Bambu shall bear the reasonable cost of any such action, including attorneys' fees.
Franchisee must fully cooperate with Bambu in any such litigation.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu bears the reasonable costs, including attorney's fees, for any action taken to address trademark infringement or illegal use of its marks. The franchisee is obligated to notify Bambu in writing of any potential infringements they become aware of. Bambu retains the sole discretion to decide whether or not to pursue legal action.
Bambu may initiate legal proceedings in its own name and has the option to include the franchisee as a party if it is deemed reasonably necessary to protect the Marks and Bambu system. The franchisee is then required to fully cooperate with Bambu in any such litigation.
This arrangement benefits the franchisee by relieving them of the financial burden of protecting Bambu's trademarks. However, the franchisee must actively monitor and report any potential infringements to Bambu to ensure the brand's integrity is maintained. Franchisees should be aware that they must cooperate fully with Bambu in any litigation, which may require time and effort on their part.