What is the consequence of unauthorized disclosure of Confidential Information related to the Bambu franchise?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee further acknowledges that Bambu has expended a great amount of effort and money in obtaining and developing the Confidential Information, that it would be very costly for competitors to acquire or duplicate the Confidential Information and that any unauthorized disclosure of such Confidential Information shall cause irreparable harm to Bambu.
Consequently, Franchisee shall not at any time, publish, disclose, divulge or in any manner communicate to any person, firm, corporation, association, partnership or any other entity whatsoever or use, directly or indirectly, for its own benefit or for the benefit of any person, firm, corporation or other entity other than for the use of Bambu or Franchisee's shoppe, any of the Confidential Information of Bambu or its affiliates.
Bambu and Franchisee agree that the Confidential Information does not include information that is generally available to the public.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to the 2025 Bambu Franchise Disclosure Document, unauthorized disclosure of confidential information can result in irreparable harm to Bambu. The FDD emphasizes that Bambu has invested significant resources in developing its confidential information, making it costly for competitors to acquire or duplicate. Franchisees are prohibited from disclosing or using this information for their own benefit or the benefit of others, except for the operation of their Bambu shop.
The confidential information includes proprietary aspects of the Bambu system, such as business formats, operating methods, recipes, menus, marketing systems, manuals, product formulas, trademarks, and other know-how. It also extends to drink and food preparation information, customer and vendor lists, and any data within the Bambu resource center materials. The agreement specifies that confidential information does not include information generally available to the public.
Bambu also requires franchisees to ensure that their officers, directors, partners, shareholders, members, managers, employees, and their immediate family members who have access to confidential information sign a Nondisclosure and Noncompetition Agreement. Franchisees must provide copies of these agreements to Bambu. Furthermore, franchisees are prohibited from making any statements that could criticize, denigrate, or disparage Bambu or its system, which could harm the brand's reputation or business relationships. Intentional or negligent disclosure of confidential information is grounds for default under the Franchise Agreement.