Does the Bambu General Release cover claims that are currently unknown?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
45,500 | 362,500 | | Recognition of non-refundable franchise fees | (638,862) | (584,458) | | Balance at End of Year | $ 1,143,455 | 1,436,817 | 9. 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 release and discharge 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 Rider.
[APPLIES ONLY IN CALIFORNIA] 7(a) Release of Unknown Claims and Waiver of California Law. Franchisee and the Franchisee Affiliates acknowledge that they are aware and informed that the laws of California may purport to limit or reduce the effect of a general release with respect to claims not known or suspected by them at the time of execution of the Release, such as Section 1542 of the Civil Code of the State of California, which provides as follows:
"A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release which, if known by him or her, must have materially affected the settlement with the debtor."
Franchisee and the Franchisee Affiliates waive and relinquish every right or benefit which they have, or may have, under Section 1542 of the Civil Code of the State of California, and under any similar provisions of any other law (as may be applicable to this Release), to the fullest extent that Franchisee and the Franchisee Affiliates may lawfully waive such right or benefit pertaining to the subject matter of this Release. In connection with such waiver and relinquishment, with respect to the Released Claims, Franchisee and the Franchisee Affiliates acknowledge that they are aware and informed that they may hereafter discover facts in addition to or different from those that they now know or believe to be true with respect to the subject matter of this Release, but that it is Franchisee's and the Franchisee Affiliates' intention to settle and release fully, and finally and forever, all Released Claims, disputes and differences, known or unknown, suspected or unsuspected, which now exist, may exist or heretofore existed, and in furtherance of such intention, the Release given herein shall be and remain in effect as a full and complete release, notwithstanding the discovery or existence of any such additional or different facts that would have affected the release of all Released Claims. Franchisee and the Franchisee Affiliates agree to defend, indemnify and hold harmless Bambu and the Bambu Affiliates from any and all Released Claims arising out of, directly or indirectly, the assertion by Franchisee and the Franchisee Affiliates (or any person or entity by, through, or on their behalf) of any Released Claims, positions, defenses, or arguments contrary to this Section 7(a) of this Rider.
[APPLIES ONLY IN MONTANA] 7(b) Release of Unknown Claims and Waiver of Montana Law.
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 that are currently unknown. The standard release requires franchisees to release Bambu from all claims, whether known or unknown, that the franchisee may have against Bambu. This release extends to any claims that may be discovered in the future.
However, the FDD also states that for franchisees in California, Montana, and North Dakota, the laws in those states may limit the effect of a general release regarding claims not known or suspected at the time of the release. Specifically, it references California Civil Code Section 1542, Montana Code Annotated Section 28-1-1602, and North Dakota Century Code Section 9-13-02, which state that a general release does not extend to claims the creditor doesn't know or suspect to exist, which, if known, would have materially affected the settlement.
Despite these state laws, the Bambu franchise agreement stipulates that franchisees in California, Montana, and North Dakota waive their rights and benefits under these specific state laws or similar provisions. The agreement emphasizes that it is the franchisee's intention to fully and finally settle and release all claims, whether known or unknown, suspected or unsuspected, that exist now, may exist, or existed in the past. This waiver is intended to ensure the release remains effective even if additional or different facts are discovered later that would have affected the release of all claims. Franchisees also agree to defend and indemnify Bambu from any claims arising from the franchisee asserting positions contrary to this waiver.