Who has the right to determine whether action will be taken on a possible infringement of a Bambu trademark?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall notify Bambu in writing of any possible infringement or illegal use by others of a trademark the same as or confusingly similar to the Marks which may come to its attention.
Franchisee acknowledges that Bambu shall have the right, in its sole discretion, to determine whether any action will be taken on account of any possible infringement or illegal use.
Bambu may commence or prosecute such action in Bambu's own name and may join Franchisee as a party to the action if Bambu determines it to be reasonably necessary for the continued protection and quality control of the Marks and Bambū system.
Bambu shall bear the reasonable cost of any such action, including attorneys' fees.
Franchisee must fully cooperate with Bambu in any such litigation.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu has the sole discretion to determine whether to take action regarding any potential trademark infringement. As a Bambu franchisee, you are required to notify Bambu in writing if you become aware of any possible infringement or illegal use of trademarks that are the same as or confusingly similar to Bambu's marks.
Bambu, according to the FDD, can initiate or pursue legal action in its own name and may include the franchisee in the action if it is deemed reasonably necessary to protect the Marks and Bambu system. Bambu is responsible for covering the reasonable costs associated with any such legal action, including attorney's fees. The franchisee is obligated to fully cooperate with Bambu in any litigation related to trademark infringement.
This means that while franchisees are responsible for reporting potential infringements, the decision to pursue legal action rests solely with Bambu. This protects the brand's trademarks and ensures consistent enforcement. Franchisees benefit from this arrangement as they are not financially burdened with the costs of litigation, which can be substantial. However, franchisees must comply and cooperate with Bambu should legal action be pursued.