factual

Is a Bambu franchisee required to assign proprietary rights to Bambu?

Bambu Franchise · 2025 FDD

Answer from 2025 FDD Document

All copyrightable or patentable works, and all discoveries, developments, designs, improvements, inventions or other information of a proprietary nature created by Franchisee or any of its owners, officers or employees in connection with the shoppe, including but not limited to any enhancements or improvements in the Bambū system, shall be the sole property of Bambu.

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 proprietary rights to Bambu. Specifically, any copyrightable or patentable works, discoveries, developments, designs, improvements, inventions, or other proprietary information created by the franchisee or their owners, officers, or employees in connection with the shoppe automatically become the sole property of Bambu. This includes, but is not limited to, enhancements or improvements to the Bambu system.

The franchisee must assign all proprietary rights, including copyrights, in these works to Bambu without receiving any additional compensation. Furthermore, the franchisee is obligated to execute additional assignments or documentation to ensure the transfer of all intellectual property, inventions, drink and food item preparation information, recipes, copyrights, trademarks, and trade secrets developed during the term of the agreement. This assignment covers any such developments made in whole or in part related to the shoppe.

The franchisee is also required to 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 Bambu system. This disclosure requirement extends to anything created solely, jointly, or commonly with others by the franchisee or their owners, officers, or employees. A written record of these creations must also be promptly created. This ensures that Bambu maintains complete control and ownership over any innovations or improvements related to the Bambu system developed by its franchisees.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.