What is the document referred to as the 'Release' in the context of a Bambu franchise?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS GENERAL RELEASE ("Release") is made effective as of the date set forth on the signature page hereto by , individually and, a |
|---|
| [corporation/limited liability company] (collectively, "Franchisee") in favor of |
| Bambu Franchising LLC, a Colorado limited liability company ("Bambu") (collectively referred to as |
| "Parties"), who, on the basis of the following agreements, agree as follows: |
| A. |
| The |
| Parties |
| have |
| entered |
| into |
| that |
| certain |
| Franchise |
| Agreement |
| dated |
| , 20 ("Franchise Agreement"), which governs the development and |
| operation of a Bambū shoppe ("Bambū shoppe" or "shoppe") (to the extent not otherwise defined |
| herein, all initial-capitalized references shall have the same meaning as set forth in the Franchise |
| Agreement); |
| B. |
| Franchisee desires to transfer the Franchise Agreement, the ownership of Franchisee, or |
| the Bambū shoppe or some or all of the assets of the shoppe; |
| OR |
| B. |
| Franchisee desires to enter into a successor agreement to the existing Franchise |
| Agreement; |
| C. |
| The Bambu desires to consent to Franchisee's request subject to Franchisee's compliance |
| with the terms and conditions set forth in the Franchise Agreement including, without limitation, the |
| execution and delivery by Franchisee to Bambu of this Release. |
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to the 2025 Bambu Franchise Disclosure Document, the 'Release' is a general release agreement effective as of the date on the signature page. This agreement is between Bambu Franchising LLC and the franchisee. The document outlines that the franchisee, in exchange for Bambu's consent to a transfer of the Franchise Agreement, ownership, or assets of the Bambu shoppe, or to enter into a successor agreement, agrees to release Bambu from all claims and liabilities related to the franchise.
The Release encompasses all claims, demands, obligations, actions, liabilities, and damages, whether known or unknown, that the franchisee or its affiliates may have against Bambu or its affiliates. This includes claims arising from any relationship or transaction with Bambu, the Franchise Agreement, or the franchise relationship itself, from the beginning of time until the date of the Release. The Release is governed by Colorado law and represents the entire agreement between the parties, superseding any prior agreements.
For franchisees in Washington, the FDD stipulates that a release or waiver of rights cannot include rights under the Washington Franchise Investment Protection Act unless it is executed as part of a negotiated settlement after the franchise agreement is in effect and both parties are represented by independent counsel. Additionally, the FDD mentions that California law may limit the effect of a general release regarding claims not known or suspected at the time of execution, as per Section 1542 of the Civil Code of the State of California. Franchisees are advised to be aware of these legal provisions and seek independent legal counsel to fully understand the implications of signing the Release.