Who bears the cost of legal 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 legal action against trademark infringement. The franchisee is obligated to notify Bambu of any potential trademark infringements and must fully cooperate with Bambu in any related litigation. However, Bambu retains the sole discretion to decide whether or not to pursue legal action.
This means that if a third party infringes on Bambu's trademarks, Bambu will cover the legal expenses associated with pursuing action against the infringing party. This protects the franchisee from unexpected legal costs related to protecting the brand's intellectual property.
It is important to note that while Bambu covers the costs, the franchisee is still required to assist and cooperate with Bambu in the legal process. This cooperation could involve providing information, documentation, or even testimony if required. The FDD specifies that the franchisee must fully cooperate with Bambu in any such litigation.