Who may Bambu require to execute a Nondisclosure and Noncompetition Agreement?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
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 14 — Patents, Copyrights, and Proprietary Information (FDD page 42)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu reserves the right to require certain individuals to execute a Nondisclosure and Noncompetition Agreement. This includes a franchisee's officers, directors, partners, shareholders, members, managers, and employees who have access to confidential information, including employed Bambū Certified Team Leaders. Bambu can also require immediate family members of these individuals to sign the agreement.
This means that as a Bambu franchisee, you may need to ensure that not only your direct staff but also individuals closely related to them legally commit to protecting Bambu's confidential business information. This is a fairly standard practice in franchising, as franchisors seek to protect their proprietary information and systems.
The franchisee is responsible for providing Bambu with a copy of each signed Nondisclosure and Noncompetition Agreement immediately after execution and upon Bambu's request. If Bambu requires an immediate family member to sign the agreement after the franchisee has already signed the Franchise Agreement, the franchisee must use their best efforts to ensure the family member complies. This places an obligation on the franchisee to actively manage and enforce these requirements among their personnel and their families.
This requirement underscores the importance Bambu places on protecting its confidential information and maintaining a competitive advantage. Prospective franchisees should carefully review the terms of the Nondisclosure and Noncompetition Agreement to understand the scope of the restrictions and ensure they can comply with the requirement to have their personnel and their immediate family members execute the agreement.