Can a franchisee disclaim reliance on any statement made by the franchisor or franchise seller in connection with the Bambu franchise?

According to the 2025 Bambu Franchise Disclosure Document, a franchisee cannot disclaim reliance on statements made by Bambu or its representatives. Specifically, any statement, questionnaire, or acknowledgment signed by a franchisee at the start of the franchise relationship cannot waive claims under state franchise law, including claims related to fraud in the inducement, or disclaim reliance on statements made by Bambu, franchise sellers, or individuals acting on Bambu's behalf. This protection is in place to ensure franchisees are not bound by clauses that might prevent them from pursuing legal recourse based on misrepresentations or fraudulent statements made during the franchise sales process. This provision overrides any conflicting terms in any document associated with the franchise agreement.

This means that even if a franchisee signs a document that appears to waive their right to claim they relied on certain statements, that waiver will not be enforceable. This is a significant protection for franchisees, as it allows them to hold Bambu accountable for the accuracy and truthfulness of the information provided during the franchise sales process. It prevents Bambu from using fine print or boilerplate language to shield themselves from liability for misrepresentations.

This type of clause is relatively common in franchise agreements, particularly in states with strong franchise laws. The intention is to protect prospective franchisees from being misled or defrauded by franchisors during the sales process. Franchise laws often aim to balance the power dynamic between franchisors and franchisees, ensuring that franchisees have the ability to seek legal remedies if they believe they were induced into the agreement based on false or misleading information.

Several addenda to the Bambu Franchise Agreement for specific states such as North Dakota, Virginia, and Washington include similar stipulations to protect franchisees. These addenda emphasize the importance of ensuring franchisees are not pressured into accepting terms that are less favorable than those outlined in the FDD and that initial fees are deferred until Bambu fulfills its pre-opening obligations. These state-specific modifications highlight the varying regulatory requirements and protections available to franchisees depending on their location.