What is a franchisee prohibited from doing with Bambu's Confidential Information?
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.
- 21.4 Confidentiality Agreements.
Bambu reserves the right to require that Franchisee cause each of its officers, directors, partners, shareholders, members, managers, and employees (including employed Bambū Certified Team Leaders) who have access to the Confidential Information, and their immediate family members, to execute and submit to Bambu a Nondisclosure and Noncompetition Agreement containing the above restrictions, in a form approved by Bambu containing the restrictive covenants of this Agreement.
If Bambu requires any immediate family member to execute a Nondisclosure and Noncompetition Agreement subsequent to the execution of this Agreement by Franchisee, Franchisee must use its best efforts to cause that immediate family member to execute the Nondisclosure and Noncompetition Agreement.
Franchisee will provide to Bambu a copy of each Nondisclosure and Noncompetition Agreement signed by any such individual immediately following its execution and thereafter upon Bambu's request.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, franchisees are strictly prohibited from certain actions regarding the company's confidential information. Bambu emphasizes that it has invested significant resources in developing this information, making it costly for competitors to replicate. Unauthorized disclosure could cause substantial harm to Bambu.
Specifically, franchisees cannot publish, disclose, divulge, or communicate Bambu's confidential information to any third party, including individuals, firms, corporations, associations, partnerships, or any other entity. They are also barred from using the confidential information, either directly or indirectly, for their own benefit or for the benefit of any entity other than Bambu or their own Bambu store. This restriction ensures that the franchisee cannot leverage Bambu's proprietary information for personal gain or to aid competitors.
However, the agreement specifies that information generally available to the public is not considered confidential. Bambu also retains the right to require the franchisee 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. This agreement reinforces the confidentiality restrictions and ensures broader compliance within the franchisee's organization. The franchisee must provide Bambu with copies of these signed agreements, demonstrating their commitment to protecting Bambu's proprietary information.