Does Bambu grant franchisees the right to use its Marks and Bambu system?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
the right to operate a Bambū shoppe at such location under the terms and conditions which are contained in this Agreement.
2. GRANT OF FRANCHISE
- 2.1 Grant of Franchise. Bambu grants to Franchisee, and Franchisee accepts from Bambu, the right to use the Marks and Bambū system in connection with the establishment and operation of one Bambū shoppe, at the location described in Article 3 of this Agreement. Franchisee agrees to use the Marks and Bambū system, as they may be changed, improved, and further developed by Bambu from time to time, only in accordance with the terms and conditions of this Agreement.
- 2.2 Scope of Franchise Operations. Franchisee shall at all times comply with Franchisee's obligations hereunder and shall continuously use best efforts to promote and operate the Bambū shoppe. Franchisee shall utilize the Marks and Bambū system to operate all aspects of the business franchised hereunder in accordance with the methods and systems developed and prescribed from time to time by Bambu, all of which are a part of the Bambū system. Franchisee's Bambū shoppe shall offer all products and services as Bambu designates and shall be restricted from offering or selling any products and services not previously approved by Bambu in writing. If Franchisee is a corporation, partnership, limited liability company or other entity, Franchisee shall not engage in any business other than the operation of a Bambū shoppe.
3. FRANCHISED LOCATION AND TERRITORIAL RIGHTS
3.1 Franchised Location. Franchisee is granted the right and franchise to own and operate a Bambū shoppe at the address and location which shall be set forth in Attachment I, attached to this Agreement ("Franchised Location"). If, at the time of execution of this Agreement, the Franchised Location cannot be designated as a specific address because a location has not been selected and approved, then Franchisee
shall promptly take steps to choose and acquire a location for its Bambū shoppe within the "Designated Area," set forth in Attachment I. In such circumstances, Franchisee shall select and propose to Bambu for Bambu's prior written approval a specific location for the Franchised Location which, once approved by Bambu, shall then be described in the rider to Attachment I.
- 3.2 Protected Area. Subject to Bambu's reservation of rights described in Section 3.4 below, Bambu shall not establish and operate, or franchise another person or entity to establish and operate, a Bambū shoppe within the geographic area described in Attachment I, attached hereto (the "Protected Area"). However, nothing in this Agreement restricts any Bambu-owned or franchised Bambū shoppes from advertising in, or soliciting customers from, Franchisee's Protected Area. Franchisee does not have exclusive rights to the customers in its Protected Area.
- 3.3 Limitation on Franchise Rights. The rights that are granted to Franchisee are for the specific Franchised Location and Protected Area and cannot be transferred to an alternative Franchised Location and Protected Area, or any other location, without the prior written approval of Bambu, which approval may be withheld for any reason, in Bambu's sole discretion. Franchisee shall not operate another shoppe, offer products or services which are part of the Bambū system at any site other than the Franchised Location, fill wholesale orders, sell products or services by mail order or through catalogs or the Internet, offer products or services at temporary venues, transship or reship products, or offer any other type of off-site service or sale of products. Franchisee may offer catering or utility third party app delivery or other online delivery programs only in compliance with Bambu's standards and specifications for offering such programs.
- 3.4 Bambu's Reservation of Rights. Franchisee acknowledges that its franchise rights as granted are non-exclusive and that Bambu, for itself, its affiliates and successors, retains the rights, among others and without payment of compensation to Franchisee:
- a. to use, and to license others to use, the Marks and Bambū system in connection with the operation of a Bambū shoppe, at any location other than within the Protected Area;
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu grants franchisees the right to use its Marks and the Bambu system for operating a Bambu shoppe at a specific location. This right is granted under the terms and conditions outlined in the Franchise Agreement. The franchisee must adhere to Bambu's standards and specifications for the shoppe's operation, including the use of approved products and services. The franchisee is obligated to use its best efforts to promote and operate the Bambu shoppe.
The grant of franchise is for a specific location, which is detailed in an attachment to the Franchise Agreement. The franchisee must get Bambu's approval for the location of the shoppe. The franchisee's rights are limited to the approved location and protected area and cannot be transferred without Bambu's written consent.
Bambu retains ownership and control over the "BAMBŪ® " service mark and other Marks, and the franchisee's right to use them is limited to the operation of the Bambu shoppe as governed by the Franchise Agreement. The franchisee cannot use the Marks as part of an email address or domain name on the Internet, unless permitted in the FRC Materials. The franchisee is required to notify Bambu of any potential infringement of the Marks and must cooperate with Bambu in any legal action taken to protect the Marks and Bambu system.
Bambu also reserves the right to use and license others to use the Marks and Bambu system in various ways, including establishing shoppes at Institutional Facilities such as airports, amusement parks, and hospitals. Bambu can also use different proprietary marks or methods if it acquires another business. These reservations of rights mean that while a franchisee is granted the right to use the Marks and Bambu system, Bambu retains significant control and can authorize others to use them in different contexts.