What obligation does a Bambu franchisee have regarding the confidentiality of the Bambu system?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee further acknowledges that Bambu has expended a great amount of effort and money in obtaining and developing the Confidential Information, that it would be very costly for competitors to acquire or duplicate the Confidential Information and that any unauthorized disclosure of such Confidential Information shall cause irreparable harm to Bambu.
Consequently, Franchisee shall not at any time, publish, disclose, divulge or in any manner communicate to any person, firm, corporation, association, partnership or any other entity whatsoever or use, directly or indirectly, for its own benefit or for the benefit of any person, firm, corporation or other entity other than for the use of Bambu or Franchisee's shoppe, any of the Confidential Information of Bambu or its affiliates.
Bambu and Franchisee agree that the Confidential Information does not include information that is generally available to the public.
- 21.4 Confidentiality Agreements.
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 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, franchisees have significant obligations to protect the confidentiality of Bambu's proprietary information. This includes not publishing, disclosing, divulging, or communicating any Confidential Information to any third party. Franchisees are also prohibited from using the Confidential Information for their own benefit or the benefit of others, except for the operation of their Bambu shoppe. This obligation extends throughout the term of the franchise agreement. Bambu emphasizes that unauthorized disclosure would cause irreparable harm and that the information is a valuable trade secret. The confidentiality obligation does not extend to information that is generally available to the public.
The definition of "Confidential Information" is broad, encompassing the distinctive business format, plans, operating methods, recipes, menus, food preparation techniques, customer and vendor lists, and any information contained in the FRC (Franchise Resource Center) Materials. It also includes any information that gives Bambu an advantage over competitors who do not have access to it. Bambu has invested considerable effort and money in developing this information, making it costly for competitors to duplicate.
Bambu also reserves the right to require franchisees to ensure that their officers, directors, partners, shareholders, members, managers, employees, and their immediate family members sign a Nondisclosure and Noncompetition Agreement. Franchisees must use their best efforts to have these individuals sign the agreement if required by Bambu and provide copies of the signed agreements to Bambu. This highlights the importance Bambu places on maintaining the secrecy of its operational and business information, extending the obligation beyond just the franchisee to those affiliated with the franchisee's business.