Can a Bambu franchisee disclaim reliance on statements made by the franchisor or its representatives through a signed statement?
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 Bambu's 2025 Franchise Disclosure Document, a franchisee cannot disclaim reliance on statements made by Bambu or its representatives through any signed statement or acknowledgment made during the commencement of the franchise relationship. This means that any agreement where a franchisee attempts to waive claims based on statements by Bambu, including those related to fraud in the inducement, is not enforceable. This protection is in place to ensure franchisees are not bound by disclaimers that could prevent them from pursuing legitimate claims against the franchisor.
This provision is designed to protect franchisees from potentially misleading or fraudulent statements made by Bambu during the franchise sales process. By preventing franchisees from disclaiming reliance on these statements, the clause ensures that Bambu can be held accountable for the accuracy and truthfulness of their representations. This helps to maintain transparency and fairness in the franchise relationship.
This protection extends to claims under any applicable state franchise law, including fraud in the inducement. The FDD explicitly states that this provision supersedes any other term in any document executed in connection with the franchise. This means that even if other parts of the franchise agreement seem to contradict this protection, this specific clause will take precedence, reinforcing the franchisee's right to rely on statements made by Bambu and its representatives.