Who pays the costs associated with litigation Bambu commences or defends to protect the marks?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
expending or paying any sums or making any commitments concerning your business. If you fail to do so, you may be at risk.
The Franchise Agreement does not obligate us to protect you against claims of infringement or unfair competition with respect to your use of the Marks. We 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, Bambu assumes responsibility for the costs associated with litigation to protect its trademarks. Specifically, Bambu will cover all expenses, including attorneys' fees and court costs, if it decides to initiate or defend legal action on behalf of a franchisee to safeguard the trademarks and the franchisee's right to use them.
However, the franchisee has responsibilities as well. The franchisee must cooperate with Bambu in any litigation. Additionally, the franchisee is required to immediately report any potential infringement or challenges to the use of Bambu's marks. The franchisee is not allowed to communicate with anyone other than Bambu or its counsel regarding such matters and cannot settle any claims 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 other administrative proceeding arising from infringement, challenge, or claim relating to any Mark. This arrangement is typical in franchising, as the franchisor has a vested interest in protecting its brand and trademarks, which are essential to the franchise system's success.