Does the Bambu franchisor authorize its employees or representatives to make representations about a franchisee's future financial performance?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that it has not relied on any verbal representations or commitments made prior to the execution hereof and agrees that Bambu will not be liable or obligated for any claims of negligent or fraudulent misrepresentation based on any such verbal representations or commitments.
Bambu does not authorize and will not be bound by any representation of any nature other than those expressed in this Agreement and in the most recent Franchise Disclosure Document ("FDD") provided to Franchisee by Bambu or its representatives in connection with this Agreement.
Franchisee further acknowledges and agrees that no representations have been made to it by Bambu regarding projected sales volumes, market potential, revenues, profits of Franchisee's Bambū shoppe, or operational assistance other than as stated in this Agreement and in the most recent FDD provided to Franchisee by Bambu.
Source: Item 19 — Financial Performance Representations (FDD page 47)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu does not authorize its representatives to make representations regarding a franchisee's potential financial performance, except as explicitly stated in the Franchise Agreement or the FDD. The agreement specifies that franchisees acknowledge they have not relied on any verbal representations or commitments made before signing. Bambu will not be held liable for claims of misrepresentation based on verbal statements.
This means that prospective franchisees should not rely on any projected sales volumes, market potential, revenues, or profits discussed outside of the official documents. Any financial performance information must be presented within the FDD or the Franchise Agreement to be considered valid and binding. This protects both the franchisee and Bambu by ensuring that all expectations are clearly documented and agreed upon in writing.
It is a common practice in franchising to disclaim any financial performance representations outside of the official FDD to avoid misunderstandings and potential legal disputes. Prospective Bambu franchisees should carefully review the financial information provided in Item 19 of the FDD and consult with financial advisors to assess the potential profitability of the franchise based on their individual circumstances and market conditions.