What franchisee actions are prohibited in connection with the commencement of a Bambu franchise relationship regarding claims under state franchise law?

According to the 2025 Bambu Franchise Disclosure Document, a franchisee cannot waive their rights to make claims under state franchise law. Specifically, no statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with starting the franchise can waive any claims under applicable state franchise law. This includes claims of fraud in the inducement or disclaiming reliance on statements made by Bambu or its representatives. This protection is highlighted in riders to the franchise agreement for Illinois, Virginia and Indiana.

This provision is designed to protect franchisees from inadvertently giving up their legal rights during the initial stages of the franchise relationship. It ensures that franchisees retain the ability to pursue legal remedies if they believe they have been misled or defrauded by Bambu. The clause overrides any other conflicting terms in any document executed in connection with the franchise agreement, reinforcing its importance.

For a prospective Bambu franchisee, this means that any document they sign at the beginning of their franchise journey cannot be used to prevent them from bringing a claim under state franchise law. This offers a degree of security, ensuring that franchisees are not bound by clauses that might unfairly limit their legal recourse. This is a fairly standard protection in franchising, as state franchise laws are designed to protect franchisees from potential abuses of power by franchisors.