Does Bambu authorize its employees or representatives to make financial performance representations?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that it has not relied on any verbal representations or commitments made prior to the execution hereof and agrees that Bambu will not be liable or obligated for any claims of negligent or fraudulent misrepresentation based on any such verbal representations or commitments.
Bambu does not authorize and will not be bound by any representation of any nature other than those expressed in this Agreement and in the most recent Franchise Disclosure Document ("FDD") provided to Franchisee by Bambu or its representatives in connection with this Agreement.
Franchisee further acknowledges and agrees that no representations have been made to it by Bambu regarding projected sales volumes, market potential, revenues, profits of Franchisee's Bambū shoppe, or operational assistance other than as stated in this Agreement and in the most recent FDD provided to Franchisee by Bambu.
Source: Item 19 — Financial Performance Representations (FDD page 47)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu does not authorize its employees or representatives to make any representations regarding projected sales volumes, market potential, revenues, or profits of a franchisee's Bambu shoppe, except as stated in the Franchise Agreement and the most recent FDD. This means that prospective franchisees should not rely on any verbal promises or projections made by Bambu employees or representatives that are not explicitly stated in these documents.
This disclaimer is a common practice in franchising to protect both the franchisor and the franchisee. It ensures that franchisees make informed decisions based on the official information provided in the FDD and the franchise agreement, rather than relying on potentially misleading or overly optimistic statements from sales representatives. By limiting financial performance representations to the FDD and Franchise Agreement, Bambu aims to provide a consistent and reliable source of information to all potential franchisees.
Prospective franchisees should carefully review Item 19 of the FDD, which may contain a financial performance representation, if Bambu chooses to include one. If Item 19 is absent or does not provide the specific financial information the franchisee is seeking, it is crucial to conduct independent research, consult with existing franchisees, and seek professional advice to develop realistic financial projections. Franchisees should also document any representations made during the sales process and verify them against the information in the FDD and Franchise Agreement.