For Bambu franchises in Maryland, can a franchisee disclaim reliance on any statement made by the franchisor, franchise seller, or other person acting on behalf of the franchisor through any statement, questionnaire, or acknowledgment?
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, franchisees in Maryland cannot disclaim reliance on statements made by the franchisor, franchise seller, or anyone acting on their behalf through any statement, questionnaire, or acknowledgment signed during the commencement of the franchise relationship. This protection extends to claims under Maryland franchise law, including fraud in the inducement. This specific provision overrides any other conflicting terms within any document related to the franchise agreement.
This means that any attempt by Bambu to include language in franchise documents that would prevent a franchisee from claiming they relied on misrepresentations or false statements is invalid under Maryland law. This is a significant protection for franchisees, as it ensures they can pursue legal action if they believe they were misled during the franchise sales process. The Maryland Rider to the Franchise Agreement explicitly addresses this issue to comply with state regulations.
This type of clause is designed to protect franchisees from potentially misleading information provided by the franchisor during the sales process. It ensures that franchisees can hold Bambu accountable for any misrepresentations made to induce them into signing the franchise agreement. Prospective franchisees in Maryland should be aware of this protection and understand that they cannot waive their right to claim reliance on statements made by Bambu or its representatives.