Does the Bambu General Release cover claims arising from the operation of a Bambu shoppe?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
by Franchisee (except any taxes Bambu is required by law to collect from Franchisee with respect to purchases from Bambu).
- 20.3 Indemnification. Franchisee shall indemnify, defend and hold harmless Bambu, its subsidiaries, parents and affiliates, and their respective shareholders, directors, officers, managers, members, employees, agents, successors and assignees (the "Indemnified Parties"), against, and to reimburse them for all claims, obligations and damages described in this Section 20.3, any and all third party obligations described in Section 20.2 and any and all claims and liabilities directly or indirectly arising out of the operation of the Bambū shoppe or arising out of the use of the Marks and Bambū system in any manner not in accordance with this Agreement, including without limitation any claims alleging violations of any laws including labor and employment laws. For purposes of this indemnification, claims shall mean and include all obligations, actual and consequential damages and costs reasonably incurred in the defense of any claim against the Indemnified Parties, including, without limitation, reasonable accountants', attorneys' and expert witness fees, costs of investigation and proof of facts, court costs, other litigation expenses and travel, lodging, and meal expenses. This indemnification includes any claims arising from the acts or omissions of Franchisee's
employees and agents. Bambu shall have the right to defend any such claim against it. This indemnity shall continue in full force and effect subsequent to and notwithstanding the expiration or termination of this Agreement.
21. RESTRICTIVE COVENANTS
- 21.1 Non-Competition During Term.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the general release that a franchisee signs includes claims arising from the operation of a Bambu shoppe. The franchisee agrees to indemnify Bambu against claims and liabilities directly or indirectly arising out of the operation of the Bambu shoppe. This includes claims alleging violations of laws, including labor and employment laws.
This means that as a Bambu franchisee, you are responsible for the operation of your shoppe and must adhere to all applicable laws. If any claims arise due to your operation of the shoppe or the use of the Bambu system in a manner not following the Franchise Agreement, you are responsible for defending and holding Bambu harmless. This includes covering all associated costs, such as attorney's fees and damages.
Furthermore, Bambu is not responsible for supervising the activities of the franchisee's Bambu shoppe or ensuring it complies with applicable laws. The franchisee must also conspicuously post a notice identifying the franchised location as being individually owned and operated. This underscores the franchisee's responsibility for the shoppe's operations and legal compliance. Franchisees should ensure they understand and comply with all applicable laws and regulations to avoid potential liabilities and claims.