Does the Bambu Franchise Agreement obligate Bambu to protect franchisees against claims of infringement?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
expending or paying any sums or making any commitments concerning your business. If you fail to do so, you may be at risk.
The Franchise Agreement does not obligate us to protect you against claims of infringement or unfair competition with respect to your use of the Marks. We reserve the right, in our sole discretion, to take any actions that we deem necessary or appropriate to protect the Marks. We pay all costs, including attorneys'
fees and court costs, associated with any litigation we decide to commence or defend on your behalf to protect the marks and your right to use them. You must cooperate with us in any litigation. Any apparent infringement of or challenge to your use of any Mark should be brought to our attention immediately and you may not communicate with any person other than us or our counsel regarding any such matter. You may not settle any claim without our written consent. We have sole discretion to take any appropriate action.
Source: Item 13 — (FDD pages 40–42)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the Franchise Agreement does not obligate Bambu to protect franchisees against claims of infringement or unfair competition related to the use of its trademarks. However, Bambu retains the right, at its discretion, to take actions deemed necessary to protect the trademarks.
While Bambu is not obligated to defend franchisees, it will cover all costs, including attorneys' fees and court costs, associated with any litigation it decides to initiate or defend on behalf of the franchisee to protect the marks and the franchisee's right to use them. The franchisee is required to cooperate with Bambu in any such litigation. Any potential infringement or challenge to the use of any mark must be immediately reported to Bambu, and the franchisee is prohibited from communicating with any party other than Bambu or its counsel regarding the matter.
The franchisee cannot settle any claim without Bambu's written consent. Bambu has the exclusive right to control any litigation, USPTO proceeding, or other administrative proceeding arising from any infringement, challenge, or claim relating to any mark.
This means that while Bambu does not have a contractual obligation to protect franchisees from infringement claims, it reserves the right to do so and will cover the costs if it chooses to defend the franchisee. However, the franchisee must relinquish control of any legal proceedings to Bambu and must cooperate fully in any litigation.