What is the purpose of the Bambu General Release?
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.
[APPLIES ONLY IN CALIFORNIA] 1.(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 favor at the time of executing the release which, if known by him, must have materially affected the settlement with the debtor."
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to the 2025 Bambu FDD, the purpose of the General Release is to fully and unconditionally release and discharge Bambu and its affiliates from any and all claims, demands, obligations, actions, liabilities, and damages that the franchisee or their affiliates may have against them. This release covers all claims, whether known or unknown, in law or in equity, that the franchisee may have against Bambu.
The General Release encompasses any claims arising from any relationship or transaction with Bambu, the Franchise Agreement, or the franchise relationship itself, from the beginning of time until the date of the release. This means that by signing the release, the franchisee is waiving their rights to pursue any legal action against Bambu for any reason related to the franchise.
In certain states like California, Montana, and North Dakota, the FDD includes specific clauses addressing the release of unknown claims and the waiver of state laws that may limit the effect of a general release. These clauses emphasize that the franchisee is aware that they may later discover facts that would have affected their decision to sign the release, but they are still intending to release all claims fully and finally. The franchisee also agrees to defend and indemnify Bambu from any claims made contrary to the release.
Prospective Bambu franchisees should carefully review the General Release and understand its implications before signing. It is advisable to seek legal counsel to fully understand the rights being waived and the potential consequences of signing the release.