What is a Bambu franchisee's obligation in the event of litigation regarding the marks?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
reserve the right, in our sole discretion, to take any actions that we deem necessary or appropriate to protect the Marks. We pay all costs, including attorneys'
fees and court costs, associated with any litigation we decide to commence or defend on your behalf to protect the marks and your right to use them. You must cooperate with us in any litigation. Any apparent infringement of or challenge to your use of any Mark should be brought to our attention immediately and you may not communicate with any person other than us or our counsel regarding any such matter. You may not settle any claim without our written consent. We have sole discretion to take any appropriate action.
Source: Item 13 — (FDD pages 40–42)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, if there is any apparent infringement or challenge to the use of any mark, a franchisee must bring it to Bambu's attention immediately. The franchisee cannot communicate with anyone other than Bambu or its counsel regarding the matter. Furthermore, the franchisee is prohibited from settling any claim without Bambu's written consent.
Bambu retains sole discretion to take any appropriate action and has the exclusive right to control any litigation, USPTO proceeding, or any other administrative proceeding arising out of any infringement, challenge, or claim relating to any mark. The franchisee is obligated to cooperate with Bambu in any litigation.
In practical terms, this means a Bambu franchisee must immediately report any potential trademark issues to Bambu and must follow Bambu's instructions regarding how to proceed. The franchisee gives up control over legal strategy and settlement decisions to Bambu. This is a fairly standard arrangement in franchising, as the franchisor has a strong interest in protecting its trademarks consistently across all locations.
While Bambu pays all costs, including attorneys' fees and court costs, associated with any litigation it decides to commence or defend on the franchisee's behalf to protect the marks and the franchisee's right to use them, the franchisee must still cooperate with Bambu in any litigation. This cooperation is essential, as the franchisee's active participation may be necessary for a successful legal outcome.