Does a Bambu franchisee receive additional consideration for assigning proprietary rights to Bambu?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall assign, or cause its owner, officer or employee to assign, all proprietary rights, including copyrights, in these works to Bambu without additional consideration.
Franchisee hereby assigns and will execute (or will cause its owner, officer or employee to assign and execute) such additional assignments or documentation to effectuate the assignment of all intellectual property, inventions, drink and food item preparation information, recipes, copyrights, trademarks and trade secrets developed in part or in whole in relation to the shoppe, during the term of this Agreement, as Bambu may deem necessary in order to enable it, at its expense, to apply for, prosecute and obtain copyrights, patents, trademarks or other proprietary rights in the United States and in foreign countries or in order to transfer to Bambu all right, title, and interest in said property.
Franchisee shall promptly disclose to Bambu all inventions, drink and food item preparation information, recipes, discoveries, improvements, creations, patents, copyrights, trademarks and confidential information relating to the shoppes and the Bambū system which it or any of its owners, officers or employees has made or may make solely, jointly or commonly with others and shall promptly create a written record of the same.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, franchisees are required to assign all proprietary rights for creations related to the shoppe to Bambu without receiving any additional compensation. This includes copyrightable or patentable works, discoveries, developments, designs, improvements, inventions, or other proprietary information created by the franchisee, its owners, officers, or employees. These creations must be connected to the Bambu shoppe, including enhancements or improvements to the Bambu system.
This means that any intellectual property developed by a franchisee in connection with their Bambu franchise, such as new drink recipes or operational improvements, automatically becomes the property of Bambu. The franchisee must assign all rights, including copyrights, to Bambu and execute any additional documents necessary to facilitate the transfer of these rights. This assignment covers intellectual property, inventions, drink and food preparation information, recipes, copyrights, trademarks, and trade secrets developed during the term of the Franchise Agreement.
The franchisee is also obligated to promptly disclose any such creations to Bambu and create a written record of them. This requirement ensures that Bambu maintains control over all aspects of the Bambu system and can protect its intellectual property rights. The franchisee does not receive additional consideration for these assignments, as it is a condition of the franchise agreement.
This clause is fairly standard in franchising, as franchisors typically want to maintain tight control over their brand and system. However, it is important for prospective Bambu franchisees to understand that they will not own any intellectual property they develop for the business and will not receive additional compensation for transferring those rights to Bambu.