During the Bambu franchise term, can a franchisee attempt to divert employees from another Bambu franchisee to a Competitive Business?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
low;
- 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, during the term of the Franchise Agreement, a franchisee is restricted from diverting or attempting to divert the employment of any employee of Bambu or another franchisee to a Competitive Business. This restriction is in place to protect Bambu's commercially valuable information and the Bambū system, which includes operations, marketing, and advertising. A Competitive Business is defined as any business deriving more than 10 percent of its gross receipts from the preparation or sale of teas, fruit dessert drinks, coffee, or other products offered by Bambū shoppes.
This non-compete clause ensures that franchisees cannot use their knowledge of the Bambu system to benefit a competing business by poaching employees. The restriction applies not only to direct attempts to divert employees but also to indirect inducements. This is designed to maintain the integrity of the Bambu franchise network and prevent unfair competition among franchisees.
However, an exception exists for franchisees in Minnesota. Minnesota Statutes Section 181.991 prohibits a franchisor from restricting a franchisee from soliciting or hiring an employee of the franchisor or another franchisee of the same franchisor. Therefore, any restrictions in Section 21.1.c of the Franchise Agreement are deemed deleted for Minnesota franchisees. This means that while franchisees in other states are bound by the non-solicitation clause, those in Minnesota are not.