According to the Bambu General Release, who benefits from the release of claims?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
- Release. Franchisee, for itself and its affiliates, and their respective current and former successors, assigns, officers, shareholders, directors, members, managers, agents, heirs and personal representatives ("Franchisee Affiliates"), hereby fully and forever unconditionally releases and discharges Bambu and its affiliates, and their respective successors, assigns, agents, representatives, employees, officers, shareholders, directors, members, managers and insurers (collectively referred to as "Bambu Affiliates") from any and all claims, demands, obligations, actions, liabilities and damages of every kind and nature whatsoever ("Released Claims"), in law or in equity, whether known or unknown, which Franchisee or the Franchisee Affiliates may now have against Bambu or the Bambu Affiliates or which may hereafter be discovered. Without limiting the foregoing, Released Claims includes, but is not limited to, all claims, demands, obligations, actions, liabilities and damages, known or unknown, in any way arising from or relating to: (i) any relationship or transaction with Bambu or the Bambu Affiliates, (ii) the Franchise Agreement or any related agreements, and (iii) the franchise relationship, from the beginning of time until the date of this Release.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the general release of claims primarily benefits Bambu and its affiliates. The document specifies that the franchisee, along with their affiliates, agrees to release and discharge Bambu and its affiliates from any and all claims, demands, obligations, actions, liabilities, and damages, whether known or unknown. This release covers a broad range of issues, including those arising from the franchise relationship, any transactions with Bambu, or the Franchise Agreement itself.
This means that by signing the release, the franchisee is giving up their right to sue Bambu or its affiliates for any past, present, or future issues related to the franchise. This includes waiving rights under specific state laws, such as Section 1542 of the Civil Code of California, Section 28-1-1602 of the Montana Code Annotated, and Section 9-13-02 of the North Dakota Century Code, which typically protect creditors from unknowingly releasing claims. The franchisee also agrees to defend and indemnify Bambu and its affiliates from any claims made against them by the franchisee or their affiliates.
For a prospective Bambu franchisee, this underscores the importance of carefully evaluating all aspects of the franchise opportunity and seeking legal counsel before signing the Franchise Agreement and any related releases. The franchisee is essentially agreeing not to pursue any legal action against Bambu, even for issues that may arise in the future and are currently unknown. This highlights the need for thorough due diligence and a clear understanding of the risks and benefits associated with the franchise.