Does Bambu reserve the right to require a franchisee's employees to sign 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 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu retains the right to mandate that franchisees ensure their officers, directors, partners, shareholders, members, managers, and employees with access to confidential information, along with their immediate family members, sign and submit a Nondisclosure and Noncompetition Agreement to Bambu. This agreement must adhere to a form approved by Bambu and include the restrictive covenants outlined in the Franchise Agreement.
If Bambu requires an immediate family member to sign this agreement after the franchisee has already signed the Franchise Agreement, the franchisee is obligated to make their best effort to ensure the family member complies. The franchisee must then provide Bambu with a copy of the signed agreement immediately after execution and upon any subsequent request from Bambu.
This requirement ensures that Bambu can protect its confidential information and trade secrets by extending non-disclosure and non-competition obligations beyond just the franchisee to those working for or associated with the franchisee who have access to sensitive information. For a prospective franchisee, this means they need to be prepared to manage the process of obtaining these signed agreements from their personnel and family members and understand that failure to do so could potentially put them in breach of their franchise agreement.