What is Bambu prohibited from doing regarding financial performance representations?
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 and will not be bound by any representation of any nature other than those expressed in the Franchise Agreement and in the most recent Franchise Disclosure Document provided to the franchisee. Bambu also makes no representations regarding projected sales volumes, market potential, revenues, or profits of the franchisee's Bambu Shoppe, or operational assistance other than what is stated in the Franchise Agreement and the most recent FDD.
This means that prospective franchisees should rely solely on the information provided in the FDD and the franchise agreement when evaluating the potential financial performance of a Bambu franchise. Any verbal promises or projections made by Bambu representatives that are not documented in these official documents should be viewed with skepticism.
This is a standard clause in franchise agreements, intended to protect the franchisor from liability based on informal or undocumented statements. Franchisees should conduct their own independent research and due diligence, including consulting with existing franchisees and financial advisors, to assess the potential profitability of a Bambu franchise.