Is a Bambu franchisee required to have employees sign a nondisclosure and noncompetition agreement?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
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 14 — Patents, Copyrights, and Proprietary Information (FDD page 42)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu reserves the right to require franchisees to have their officers, directors, partners, shareholders, members, managers, and employees (including Bambū Certified Team Leaders) who have access to confidential information, and their immediate family members, to sign a Nondisclosure and Noncompetition Agreement. This agreement must be in a form approved by Bambu and contain the restrictive covenants outlined in the Franchise Agreement.
If Bambu requires any immediate family member to execute a Nondisclosure and Noncompetition Agreement after the Franchise Agreement is signed, the franchisee must use their best efforts to ensure that the family member signs the agreement. The franchisee is then required to provide Bambu with a copy of each signed Nondisclosure and Noncompetition Agreement immediately after execution and upon Bambu's request.
This clause ensures that Bambu can protect its confidential information and trade secrets by extending the obligation of confidentiality and non-competition to those individuals within the franchisee's organization who have access to sensitive information. It also places the onus on the franchisee to actively manage and enforce these agreements within their team and family, highlighting the importance Bambu places on safeguarding its proprietary information.