Does the Bambu franchise agreement consider the licensing of commercially valuable information as part of the franchise agreement?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
21.1 Non-Competition During Term. Franchisee acknowledges that, in addition to the license of the Marks hereunder, Bambu has also licensed commercially valuable information which comprises and is a part of the Bambū system, including without limitation, operations, marketing, advertising and related information and materials and that the value of this information derives not only from the time, effort and money which went into its compilation, but from the usage of the same by all the franchisees of Bambu using the Marks and Bambū system. Therefore, other than the Bambū shoppe licensed herein or authorized by separate agreement with Bambu, neither Franchisee nor any of Franchisee's officers, directors, shareholders, members, managers or partners, nor any member of his or their immediate families, shall during the term of this Agreement:
- a. have any direct or indirect controlling interest as a disclosed or beneficial owner in a "Competitive Business" as defined below;
- b. perform services as a director, officer, manager, employee, consultant, representative, agent or otherwise for a Competitive Business; or
- c. divert or attempt to divert any business related to, or any customer or account of the Bambū shoppe, Bambu's business or any other Bambū franchisee's business, by direct inducement or otherwise, or divert or attempt to divert the employment of any employee of Bambu or another franchisee licensed by Bambu to use the Marks and Bambū system, to any Competitive Business by any direct inducement or otherwise.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the franchise agreement does consider the licensing of commercially valuable information as part of the agreement. Specifically, the agreement acknowledges that Bambu licenses commercially valuable information that is part of the Bambū system. This information includes, but is not limited to, operations, marketing, advertising, and related materials.
The FDD emphasizes that the value of this information comes from the time, effort, and money invested in its creation, as well as its consistent use by all Bambu franchisees. This suggests that franchisees benefit from a standardized system and brand identity, which contributes to the overall value of the franchise.
Furthermore, the franchise agreement includes restrictive covenants that prevent franchisees from engaging in competitive businesses during the term of the agreement. This restriction is in place because franchisees have access to this commercially valuable information, and Bambu aims to protect its proprietary system and brand. This non-compete clause ensures that franchisees do not use the licensed information to benefit a competing business, safeguarding Bambu's interests and the integrity of the Bambū system.