Does Bambu retain the right to use the Marks and Bambu system outside the Protected Area?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that its franchise rights as granted are non-exclusive and that Bambu, for itself, its affiliates and successors, retains the rights, among others and without payment of compensation to Franchisee:
a. to use, and to license others to use, the Marks and Bambū system in connection with the operation of a Bambū shoppe, at any location other than within the Protected Area;
b. to use the Marks to identify any type of products and services, promotional and marketing efforts or related items, and to identify products and services distributed or otherwise made available through alternative channels of distribution (other than Bambū shoppes), at any location, and on any terms and conditions as Bambu determines including, but not limited to, sales through channels such as wholesale or retail distribution, Internet marketing and distribution, social media marketing, mail order, catalog, retail store display, or made-to-order or pre-packaged product sales in grocery stores, at any location;
c. to use and license the use of different proprietary marks or methods (for example, if Bambu acquires or is acquired by another business that provides products and services similar to or the same as a shoppe) in connection with the sale of products and services similar to or the same as those which Franchisee sells, whether in alternative channels of distribution or through owning, developing, operating or franchising stores which are the same as, or similar to, or different from Bambū shoppes, at any location, and on any terms and conditions as determined by Bambu;
d. to use and to license others to use the Marks and Bambū system to establish restaurants similar to Bambū shoppes that service walkup and drive-thru customers but without indoor seating (a "Drive-thru shoppe"), at any location, including in Franchisee's Protected Area; provided that if Bambu desires to open or permit someone else to open a Drive-thru shoppe in Franchisee's Protected Area, Bambu will give Franchisee a right of first refusal to participate in the Drive-thru shoppe with either partial or whole ownership thereof;
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 use, and to license others to use, the Marks and Bambu system in connection with the operation of a Bambu shoppe, at any location other than within the Protected Area. This means that while a franchisee is granted a Protected Area, Bambu itself is not restricted from operating or franchising other locations outside of that area. This ensures that Bambu can continue to expand its brand presence without being limited by individual franchise territories.
This reservation of rights extends to using the Marks to identify any type of products and services, promotional and marketing efforts or related items, and to identify products and services distributed or otherwise made available through alternative channels of distribution (other than Bambu shoppes), at any location. These alternative channels include wholesale or retail distribution, Internet marketing and distribution, social media marketing, mail order, catalog, retail store display, or made-to-order or pre-packaged product sales in grocery stores. This broad reservation allows Bambu to explore various revenue streams and marketing strategies without infringing on the franchisee's territory, as long as these activities occur outside the Protected Area.
Bambu also reserves the right to use and license the use of different proprietary marks or methods, especially if Bambu acquires or is acquired by another business that provides similar products and services. This allows Bambu to adapt and evolve its business model, potentially introducing new brands or operational methods without being restricted by existing franchise agreements. Furthermore, Bambu can use and license the Marks and Bambu system to establish restaurants similar to Bambu shoppes that service walkup and drive-thru customers but without indoor seating (a "Drive-thru shoppe"), at any location. However, if Bambu wants to open a Drive-thru shoppe in the franchisee's Protected Area, the franchisee has the right of first refusal to participate in the Drive-thru shoppe with either partial or whole ownership.