What is the consequence if a Bambu franchisee intentionally discloses trade secrets of Bambu?

According to the 2025 Bambu Franchise Disclosure Document, if a franchisee intentionally or negligently discloses Bambu's trade secrets or confidential information to an unauthorized person, it constitutes an event of default under the franchise agreement. This is explicitly stated as 'Unauthorized Disclosure' in Item 23.

An event of default allows Bambu to terminate the franchise agreement with the franchisee. This means the franchisee would lose the right to operate the Bambu shop and use the Bambu brand name, system, and intellectual property. The franchisee would likely also be subject to legal action from Bambu to recover damages resulting from the unauthorized disclosure and to prevent further dissemination of the trade secrets.

Bambu defines 'Confidential Information' broadly to include the business format, plans, operating methods, recipes, menus, marketing systems, manuals, product formulas, trademarks, and know-how. This definition highlights the importance Bambu places on protecting its proprietary information and the serious consequences for franchisees who violate this confidentiality. Franchisees should be extremely careful to safeguard all information deemed confidential by Bambu, as unauthorized disclosure, even if unintentional, can lead to termination of the franchise agreement.