What is the purpose of the General Release document required by Bambu?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
itions set forth in the Franchise Agreement including, without limitation, the | | execution and delivery by Franchisee to Bambu of this Release. |
- 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."
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 1(a) of this Release.
[APPLIES ONLY IN MONTANA] 1.(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 serves to release Bambu and its affiliates from any and all claims, demands, obligations, actions, liabilities, and damages of every kind, whether known or unknown, that the franchisee or their affiliates may have against Bambu. This release covers 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 General Release, the franchisee is waiving their right to sue Bambu for virtually any reason related to the franchise.
The FDD specifies that franchisees acknowledge they may discover new facts that are different from what they know or believe to be true when executing the release. Despite this possibility, the franchisee intends to fully and forever settle and release all claims, known or unknown, suspected or unsuspected. The release remains in effect even if additional or different facts emerge that could have affected the decision to release all claims. This is particularly relevant in California, Montana and North Dakota, where state laws (Section 1542 of the Civil Code of the State of California, Section 28-1-1602 of the Montana Code Annotated and Section 9-13-02 of the North Dakota Century Code) may limit the effect of a general release regarding unknown claims. The franchisee is waiving these protections.
However, for franchisees in Washington state, a release or waiver of rights cannot include rights under the Washington Franchise Investment Protection Act (RCW 19.100) unless it is executed as part of a negotiated settlement after the franchise agreement is in effect and both parties are represented by independent counsel. This provides an additional layer of protection for Washington franchisees compared to those in other states. Prospective franchisees should carefully consider the implications of signing a General Release, especially concerning potential future claims that are unknown at the time of signing. It is advisable to seek legal counsel to fully understand the rights being waived and the potential impact on the franchise relationship.