Under what circumstances may Bambu require a franchisee and their personnel to execute a Nondisclosure and Noncompetition Agreement?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
agree that the Confidential Information does not include information that is generally available to the public.
- 21.4 Confidentiality Agreements. 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.
- 21.5 Non-Disparagement. Franchisee agrees that it shall not take any action or make any statements to any third parties that would constitute a criticism, denigration or disparagement of Bambu or its Bambū system or would tend to be injurious to the reputation or goodwill of Bambu or its Marks, or which in any manner may interfere with the business affairs or business relations of Bambu.
Source: Item 14 — Patents, Copyrights, and Proprietary Information (FDD page 42)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu reserves the right to require franchisees to ensure that their officers, directors, partners, shareholders, members, managers, and employees (including Bambū Certified Team Leaders) who have access to confidential information, along with their immediate family members, execute a Nondisclosure and Noncompetition Agreement. This agreement must be in a form approved by Bambu and contain restrictive covenants.
If Bambu requires an immediate family member to sign this agreement after the franchisee has already signed the Franchise Agreement, the franchisee must make their best effort to ensure the family member complies. The franchisee is then obligated to provide Bambu with a copy of each signed Nondisclosure and Noncompetition Agreement immediately after execution and upon Bambu's request thereafter.
Additionally, in the event of a transfer of the franchise, the proposed transferee must execute a Nondisclosure and Noncompetition Agreement in a form currently offered and required by Bambu. This is a pre-condition for the transfer of the franchise rights. This agreement would supersede the original Franchise Agreement in all respects.