What is the Bambu franchisee's obligation in the event of litigation regarding trademark infringement?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall notify Bambu in writing of any possible infringement or illegal use by others of a trademark the same as or confusingly similar to the Marks which may come to its attention.
Franchisee acknowledges that Bambu shall have the right, in its sole discretion, to determine whether any action will be taken on account of any possible infringement or illegal use.
Bambu may commence or prosecute such action in Bambu's own name and may join Franchisee as a party to the action if Bambu determines it to be reasonably necessary for the continued protection and quality control of the Marks and Bambū system.
Bambu shall bear the reasonable cost of any such action, including attorneys' fees.
Franchisee must fully cooperate with Bambu in any such litigation.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, if a franchisee becomes aware of potential trademark infringement related to the Bambu brand, they are required to notify Bambu in writing. After being notified, Bambu has the sole discretion to decide whether or not to take action against the infringement.
Bambu retains the right to initiate and manage any legal action concerning trademark infringement, including the ability to add the franchisee as a party if deemed necessary to protect the brand and its quality control standards. Bambu is responsible for covering the reasonable costs associated with such legal actions, including attorney's fees.
The franchisee is obligated to fully cooperate with Bambu in any litigation related to trademark infringement. This cooperation is essential to ensure Bambu can effectively protect its trademarks and the Bambu system. This clause ensures that franchisees actively support Bambu's efforts to maintain the integrity and exclusivity of its brand identity.