Upon termination of an Associate's affiliation with the Franchisee, what is the Associate required to do with all Confidential Information related to the Bambu franchise?
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's responsibilities regarding confidential information extend beyond their affiliation with a franchisee. Specifically, upon termination of their affiliation, the Associate is required to return all Confidential Information to the Franchisee.
This obligation is part of a broader agreement where the Associate acknowledges that the Confidential Information is valuable and unique to Bambu. The Associate agrees not to use this information for personal benefit during their affiliation or at any time after the termination of their affiliation. They are also prohibited from disclosing any of the confidential information to any third party without Bambu's prior written consent.
This requirement is designed to protect Bambu's trade secrets and proprietary information, ensuring that former associates do not use sensitive business data to compete against the franchise or disclose it to competitors. This is a standard practice in franchising to maintain brand consistency and protect the franchisor's competitive advantage.