What is the scope of the 'Bambu system' that is considered confidential?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that Bambu owns and controls the distinctive plan for the establishment, operation and promotion of the Bambū shoppe and all related Bambū system of doing business, previously defined as the "Bambū system", which include, but are not limited to, Bambu's standards and specifications for the franchised site, premises, leasehold improvements, interior finish, equipment, supplies, materials, inventory type and control, technical equipment standards, order fulfillment methods, customer relations, marketing techniques, written promotional materials, advertising, accounting systems, drink and food item preparation information, menu items, food preparation methods and any applicable food handler requirements and safety standards, all of which constitute confidential trade secrets of Bambu.
Franchisee acknowledges that Bambu has valuable rights in and to such trade secrets.
Franchisee further acknowledges that it has not acquired any right, title or interest in the Bambū system except for the right to use the Bambū system in the operation of the Bambū shoppe as it is governed by this Agreement and that it is obligated to maintain the confidentiality of the Bambū system in accordance with Section 21.3 below.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the confidential 'Bambu system' encompasses a wide array of elements critical to the establishment, operation, and promotion of a Bambu shoppe. This includes standards and specifications for the franchised site, premises, leasehold improvements, interior finish, equipment, supplies, materials, inventory type and control, technical equipment standards, order fulfillment methods, customer relations, marketing techniques, written promotional materials, advertising, and accounting systems.
Furthermore, the confidential system extends to drink and food item preparation information, menu items, food preparation methods, and any applicable food handler requirements and safety standards. Bambu considers all these components confidential trade secrets, emphasizing their importance to the brand's identity and operational success. Franchisees must acknowledge that they have not acquired any right, title, or interest in the Bambu system, except for the right to use it within the scope of the Franchise Agreement.
This means that a franchisee is obligated to maintain the confidentiality of the Bambu system and cannot disclose these trade secrets to third parties. This obligation is reinforced by the requirement that certain individuals, such as employees and family members with access to confidential information, sign Nondisclosure and Noncompetition Agreements. Unauthorized disclosure or use of this information could result in significant harm to Bambu, and franchisees are responsible for safeguarding these confidential aspects of the Bambu system.