What are the potential consequences for a Bambu franchisee if the franchisor's right to use unregistered trademarks is challenged?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
tration Date | |---|---|---| | | Reg. No. 5,321,760 | October 31, 2017 | | YONAMI | Reg. No. 7,534,752 | October 15, 2024 | In addition to those Marks listed above, we claim common law service or trademark rights to a number of other words, phrases, or designs that you may use in your Bambū shoppe. The following statements apply solely to any unregistered trademarks and service marks: We do not have a federal registration for these trademarks. Therefore these trademarks do not have as many legal benefits and rights as federally registered trademarks. If our right to use these trademarks is challenged, you may have to change to an alternative trademark, which may increase your expenses.
You must use the mark "BAMBŪ" as the principal identification of your Bambū shoppe. You must also identify yourself as an independent owner of the shoppe, however, in the manner as we may require. You may not use any of the Marks or words that are confusingly similar to the Mark as part of any corporate or trade name or with any prefix to identify unauthorized services or products or in any other manner not expressly authorized in writing by us. Except as permitted in the FRC Materials, you may not use any of the Marks as part of an electronic mail address or on any sites on the Internet and you may not use or register any of the Marks as part of a domain name on the Internet. You must modify or discontinue your use of the Marks if we require modification or discontinuance, at your own expense.
As of the date of this Disclosure Document, there are no presently effective determinations of the United States Patent and Trademark Office, the Trademark Trial and Appeal Board, the trademark administrator of any state or any court, any pending infringement, opposition or cancellation proceedings or material litigation involving the Marks.
We have filed all required affidavits for the registered Marks. The registrations for the above listed Marks have been renewed as necessary to keep these registrations in effect. We intend to continue to renew our Mark registrations at the appropriate time.
No agreements limit our right to use or license the use of the Marks.
You should bring any uses of names or marks confusingly similar to the Marks to our attention immediately.
We are aware of other businesses that use names similar to the Marks in certain areas. Some of these other businesses have federally registered trademarks covering similar goods and services such as restaurants and coffee products. As a result, there may be superior prior rights or infringing uses that could materially affect the use of the Marks in certain areas. We strongly urge you to research this possibility, using telephone directories, local filings and other means, before you sign the Franchise Agreement or any other documents related to your business, or 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.
Source: Item 13 — (FDD pages 40–42)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu claims common law service or trademark rights to a number of other words, phrases, or designs that franchisees may use in their Bambu shops, but does not have federal registration for these trademarks. Because these trademarks do not have as many legal benefits and rights as federally registered trademarks, if Bambu's right to use these unregistered trademarks is challenged, a franchisee may have to change to an alternative trademark, which may increase their expenses.
Bambu requires franchisees to use the mark "BAMBŪ" as the principal identification of their Bambu shop and to identify themselves as independent owners. Franchisees cannot use marks or words confusingly similar to Bambu's marks as part of any corporate or trade name, to identify unauthorized services or products, or in any manner not expressly authorized in writing by Bambu. Unless permitted in the FRC Materials, franchisees cannot use any of the marks as part of an email address or on any sites on the Internet, nor can they register any of the marks as part of a domain name on the Internet. Franchisees must modify or discontinue their use of the marks if Bambu requires it, at their own expense.
Bambu is aware of other businesses that use names similar to the Marks in certain areas. Some of these other businesses have federally registered trademarks covering similar goods and services such as restaurants and coffee products. As a result, there may be superior prior rights or infringing uses that could materially affect the use of the Marks in certain areas. Bambu urges prospective franchisees to research this possibility, using telephone directories, local filings and other means, before signing the Franchise Agreement or any other documents related to their business, or expending or paying any sums or making any commitments concerning their business. If a franchisee fails to do so, they may be at risk.
The Franchise Agreement does not obligate Bambu to protect franchisees against claims of infringement or unfair competition with respect to their use of the Marks. Bambu reserves the right to take any actions that it deems necessary or appropriate to protect the Marks. Bambu pays all costs, including attorneys' fees and court costs, associated with any litigation it decides to commence or defend on a franchisee's behalf to protect the marks and their right to use them. Franchisees must cooperate with Bambu in any litigation. Any apparent infringement of or challenge to a franchisee's use of any Mark should be brought to Bambu's attention immediately, and the franchisee may not communicate with any person other than Bambu or its counsel regarding any such matter. Franchisees may not settle any claim without Bambu's written consent. Bambu has sole discretion to take any appropriate action and has the right to control exclusively any litigation, USPTO proceeding or any other administrative proceeding arising out of any infringement, challenge or claim relating to any Mark.