In the Bambu franchise agreement, which sentence in Section 5.2 is deleted and replaced?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The second through fourth sentences in Section 24.2 of the Franchise Agreement are hereby deleted.
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- 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)
Based on the 2025 Bambu Franchise Disclosure Document, there is no mention of any sentence in Section 5.2 being deleted and replaced. However, the document does mention changes to other sections of the franchise agreement through various state-specific riders. For example, the Hawaii Rider states that the second through fourth sentences in Section 24.2 of the Franchise Agreement are deleted. Similarly, the Illinois Rider notes that Section 23.5 is deleted and replaced with new language regarding governing law, jurisdiction, and waiver of jury trial.
Several other sections are modified or have language added through state-specific riders. These modifications often relate to compliance with state franchise laws, termination and non-renewal rights, and limitations on certain clauses within the agreement. For instance, the Minnesota Rider adds language to Sections 17.2.f and 18.3.d, ensuring that any release executed does not waive claims under the Minnesota Franchise Act. The Indiana Rider limits the scope of the post-termination covenant not to compete in Section 21.2 to a 10-mile radius of the former franchised location.
Prospective franchisees should carefully review the riders applicable to their specific state to understand how the standard franchise agreement is modified. Since the FDD does not specify changes to Section 5.2, it would be prudent for a potential franchisee to confirm with Bambu whether any modifications exist that are not documented in the FDD or its exhibits.