factual

What constitutes Confidential Information that an Associate of a Bambu franchise must keep confidential?

Bambu Franchise · 2025 FDD

Answer from 2025 FDD Document

ion which may be considered a trade secret or proprietary and such Confidential Information as may be further developed from time to time by Bambu.

    1. Use and Disclosure of Confidential Information. Associate acknowledges that, in connection with Associate's Affiliation with Bambu or Franchisee, Bambu or Franchisee will disclose in strict confidence certain Confidential Information necessary for the operation of a Bambū shoppe. Associate specifically acknowledges that the Confidential Information is valuable, unique and comprises a substantial portion of the assets of Bambu; and Associate agrees that he or she will not utilize all or any portion of the same for Associate's personal benefit during the term of Associate's Affiliation with Franchisee, nor in any manner use the same subsequent to the termination of Associate's Affiliation with Bambu or Franchisee or the termination or expiration of the Franchise Agreement, nor disclose any of the same to any person, firm, corporation or other entity whatsoever at any time for any reason or purpose, without the prior written consent of Bambu. Associate shall not copy, publish or otherwise duplicate the Confidential Information or permit others to do so and shall return all Confidential Information to Franchisee upon termination of Associate's Affiliation with Franchisee. Associate may disclose to other employees, agents, or representatives of Bambu or Franchisee the Confidential Information only to the extent necessary for such employees, agents or representatives to carry out their intended function.
    1. 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; or
  • (d) divert or attempt to divert the employment of any employee or representative of Bambu, Franchisee or any other franchisee of Bambu to any Competitive Business by any direct inducement or otherwise.

The term "Competitive Business" as used in this Agreement means any business operating, or any business granting franchises or licenses to others to operate a retail or wholesale business deriving more than 10 percent of its gross receipts from preparation of or sale of teas, fruit dessert drinks, coffee or other products now or in the future offered or sold by Bambū shoppes.

Source: Item 23 — Receipts (FDD pages 52–209)

What This Means (2025 FDD)

According to Bambu's 2025 Franchise Disclosure Document, an Associate's access to confidential information is tied to their affiliation with Bambu or a franchisee. This access necessitates strict confidentiality regarding information vital for operating a Bambu shoppe. The agreement emphasizes that this Confidential Information is a significant asset to Bambu, making it both valuable and unique. Associates are prohibited from using this information for personal gain during their affiliation and after its termination.

The agreement strictly forbids Associates from disclosing any Confidential Information to any third party, including individuals, firms, corporations, or other entities, at any time or for any reason, without Bambu's prior written consent. This extends to preventing the copying, publishing, or duplication of Confidential Information. Upon termination of their affiliation, Associates must return all Confidential Information to the franchisee. However, Associates are permitted to share Confidential Information with other employees, agents, or representatives of Bambu or the franchisee, but only to the extent necessary for them to perform their duties.

The definition of Confidential Information includes, but is not limited to, proprietary details about Bambu shoppes, the Bambu system, the business format, plans, methods, drink and food preparation, recipes, menus, food preparation techniques, processes, and product formulas. It also covers designs, layouts, operating procedures, financial information (excluding publicly filed data), marketing methods, sales strategies, nonpublic statistical data, strategic plans, budgets, projections, negotiation details, marketing research, resource center materials, internal franchisee and customer lists, and any trade secrets or proprietary information developed by Bambu.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.