Does the Bambu General Release cover claims arising from the Franchise Agreement?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Release. Franchisee, for itself and its affiliates, and their respective current and former successors, assigns, officers, shareholders, directors, members, managers, agents, heirs and personal representatives ("Franchisee Affiliates"), hereby fully and forever unconditionally releases and discharges Bambu and its affiliates, and their respective successors, assigns, agents, representatives, employees, officers, shareholders, directors, members, managers and insurers (collectively referred to as "Bambu Affiliates") from any and all claims, demands, obligations, actions, liabilities and damages of every kind and nature whatsoever ("Released Claims"), in law or in equity, whether known or unknown, which Franchisee or the Franchisee Affiliates may now have against Bambu or the Bambu Affiliates or which may hereafter be discovered. Without limiting the foregoing, Released Claims includes, but is not limited to, all claims, demands, obligations, actions, liabilities and damages, known or unknown, in any way arising from or relating to: (i) any relationship or transaction with Bambu or the Bambu Affiliates, (ii) the Franchise Agreement or any related agreements, and (iii) the franchise relationship, from the beginning of time until the date of this Release.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the general release does cover claims arising from the Franchise Agreement. The release states that the franchisee releases Bambu from all claims and liabilities, whether known or unknown, that the franchisee may have against Bambu. This includes claims arising from or relating to the Franchise Agreement or any related agreements. This means that by signing the release, a franchisee waives their right to sue Bambu for any issues related to the franchise agreement.
This release applies to the franchisee and its affiliates, including their successors, assigns, officers, shareholders, directors, members, managers, agents, heirs, and personal representatives. It covers all types of claims, demands, obligations, actions, liabilities, and damages, whether in law or equity. The release extends from the beginning of time until the date the release is signed.
However, the FDD also notes some state-specific exceptions to the general release. For example, in California, Montana, and North Dakota, the release includes a waiver of rights under state laws that protect against the release of unknown claims. In Minnesota, any release executed will not apply to any claims that may arise under the Minnesota Franchise Act. These exceptions suggest that the enforceability and scope of the general release can vary depending on the franchisee's location.
A prospective Bambu franchisee should carefully review the release and understand its implications before signing. They may want to consult with an attorney to discuss the specific terms of the release and how it may affect their rights. It is important to be aware of any state-specific laws that may limit the scope of the release.