Does the Bambu franchise agreement allow a franchisee to disclaim reliance on statements made by the franchisor or its representatives through signed questionnaires or acknowledgements?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor.
This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to the 2025 Bambu Franchise Disclosure Document, the franchise agreement does not allow a franchisee to disclaim reliance on statements made by Bambu or its representatives through signed questionnaires or acknowledgements. This protection extends to claims under applicable state franchise law, including fraud in the inducement. This means that any statement, questionnaire, or acknowledgment signed by the franchisee cannot waive their right to claim they relied on misrepresentations made by Bambu during the franchise sales process. This provision takes precedence over any conflicting terms in any document related to the franchise agreement.
This clause is particularly important for prospective franchisees as it safeguards their ability to seek legal recourse if they believe they were misled by Bambu during the franchise sales process. It ensures that franchisees cannot inadvertently waive their rights through standard acknowledgements or questionnaires often included in franchise agreements. This protection is especially relevant in states with strong franchise laws aimed at preventing franchisor overreach.
However, it is important to note that while this provision protects franchisees from unintentionally waiving their rights, it does not guarantee a successful outcome in any legal claim. Franchisees still bear the responsibility of proving that they relied on specific misrepresentations made by Bambu and that these misrepresentations caused them harm. Therefore, it is crucial for prospective franchisees to carefully document all communications with Bambu and to seek legal counsel if they have any concerns about the accuracy or completeness of the information provided.
Furthermore, the FDD includes riders for specific states like Hawaii, Virginia, and Washington, which may contain additional stipulations or modifications to the franchise agreement. While these riders do not directly address the disclaimer of reliance, they highlight the importance of reviewing the entire agreement and any state-specific addenda to fully understand the franchisee's rights and obligations. These riders often address issues such as deferral of initial fees or modifications to specific sections of the agreement to comply with state regulations.