After termination of affiliation with Bambu or the Franchisee, is an Associate allowed to disclose Confidential Information?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Use and Disclosure of Confidential Information. Associate acknowledges that, in connection with Associate's Affiliation with Bambu or Franchisee, Bambu or Franchisee will disclose in strict confidence certain Confidential Information necessary for the operation of a Bambū shoppe. Associate specifically acknowledges that the Confidential Information is valuable, unique and comprises a substantial portion of the assets of Bambu; and Associate agrees that he or she will not utilize all or any portion of the same for Associate's personal benefit during the term of Associate's Affiliation with Franchisee, nor in any manner use the same subsequent to the termination of Associate's Affiliation with Bambu or Franchisee or the termination or expiration of the Franchise Agreement, nor disclose any of the same to any person, firm, corporation or other entity whatsoever at any time for any reason or purpose, without the prior written consent of Bambu. Associate shall not copy, publish or otherwise duplicate the Confidential Information or permit others to do so and shall return all Confidential Information to Franchisee upon termination of Associate's Affiliation with Franchisee. Associate may disclose to other employees, agents, or representatives of Bambu or Franchisee the Confidential Information only to the extent necessary for such employees, agents or representatives to carry out their intended function.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, an Associate is prohibited from disclosing Confidential Information both during and after their affiliation with Bambu or the franchisee. The Associate acknowledges that this Confidential Information is valuable and unique to Bambu, forming a substantial part of its assets. This restriction remains in effect even after the termination or expiration of the Franchise Agreement.
The Associate is not allowed to use the Confidential Information for personal benefit or disclose it to any third party without Bambu's prior written consent. They are also required to return all Confidential Information to the franchisee upon termination of their affiliation. The Associate can only share Confidential Information with other employees, agents, or representatives of Bambu or the franchisee to the extent necessary for them to perform their duties.
This stringent confidentiality requirement underscores the importance Bambu places on protecting its proprietary information. For a prospective franchisee, this means that not only are they bound by confidentiality agreements, but their employees and anyone affiliated with their franchise must also adhere to these restrictions. Failure to comply with these confidentiality obligations could result in legal repercussions and significant financial harm to both the franchisee and the Associate.