Does the provision regarding waivers and disclaimers supersede other terms in documents executed in connection with the Bambu franchise?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to the 2025 Bambu Franchise Disclosure Document, certain provisions regarding waivers and disclaimers do indeed supersede other terms in documents executed in connection with the franchise, but this is subject to specific state laws. Specifically, the Illinois, Virginia, and Hawaii riders to the franchise agreement contain clauses stating that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor.
This clause is designed to protect franchisees from inadvertently giving up their legal rights during the initial stages of the franchise relationship. It ensures that franchisees can still pursue legal action if they believe they were misled or defrauded, regardless of any documents they may have signed at the outset.
The inclusion of these riders highlights the importance of state-specific franchise laws and the need for franchisees to be aware of their rights in their particular state. Prospective Bambu franchisees should carefully review the riders applicable to their state and consult with an attorney to fully understand the implications of these provisions.