What is the effect of the Bambu General Release on future 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.
[APPLIES ONLY IN CALIFORNIA] 1.(a) Release of Unknown Claims and Waiver of California Law. Franchisee and the Franchisee Affiliates acknowledge that they are aware and informed that the laws of California may purport to limit or reduce the effect of a general release with respect to claims not known or suspected by them at the time of execution of the Release, such as Section 1542 of the Civil Code of the State of California, which provides as follows:
"A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release which, if known by him, must have materially affected the settlement with the debtor."
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the General Release has a significant impact on a franchisee's ability to make future claims against the franchisor. The standard release stipulates that the franchisee fully and unconditionally releases Bambu and its affiliates from all claims, demands, obligations, actions, liabilities, and damages, whether known or unknown, that the franchisee may have against them. This release covers any 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.
Notably, the FDD includes specific clauses addressing the release of unknown claims and waivers of state laws in California, Montana, and North Dakota. These clauses highlight that franchisees are aware that state laws may limit the effect of a general release regarding claims not known or suspected at the time of execution. However, by signing the release, franchisees waive any rights or benefits they may have under these state laws, fully intending to settle and release all claims, known or unknown, suspected or unsuspected.
This means that even if a Bambu franchisee later discovers new facts or different information that would have affected their decision to sign the release, the release remains in full effect. Furthermore, the franchisee agrees to defend, indemnify, and hold harmless Bambu from any claims arising from the franchisee's assertion of any released claims, positions, defenses, or arguments contrary to the release. This comprehensive release and waiver have significant legal implications, as it limits the franchisee's ability to pursue future legal action against Bambu, even for issues that were not known at the time of signing the release.