What is the relationship between the Bambu Franchise Agreement and the General Release?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS GENERAL RELEASE ("Release") is made effective as of the date set forth on the signature page hereto by , individually and, a |
|---|
| [corporation/limited liability company] (collectively, "Franchisee") in favor of |
| Bambu Franchising LLC, a Colorado limited liability company ("Bambu") (collectively referred to as |
| "Parties"), who, on the basis of the following agreements, agree as follows: |
| A. |
| The |
| Parties |
| have |
| entered |
| into |
| that |
| certain |
| Franchise |
| Agreement |
| dated |
| , 20 ("Franchise Agreement"), which governs the development and |
| operation of a Bambū shoppe ("Bambū shoppe" or "shoppe") (to the extent not otherwise defined |
| herein, all initial-capitalized references shall have the same meaning as set forth in the Franchise |
| Agreement); |
| B. |
| Franchisee desires to transfer the Franchise Agreement, the ownership of Franchisee, or |
| the Bambū shoppe or some or all of the assets of the shoppe; |
| OR |
| B. |
| Franchisee desires to enter into a successor agreement to the existing Franchise |
| Agreement; |
| C. |
| The Bambu desires to consent to Franchisee's request subject to Franchisee's compliance |
| with the terms and conditions set forth in the Franchise Agreement including, without limitation, the |
| execution and delivery by Franchisee to Bambu of this Release. |
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the General Release is related to the Franchise Agreement in that it releases Bambu from claims arising from the Franchise Agreement. Specifically, the General Release covers any and all claims, demands, obligations, actions, liabilities, and damages, whether known or unknown, that the franchisee or its affiliates may have against Bambu or its affiliates. This includes claims arising from any relationship or transaction with Bambu, the Franchise Agreement itself, or the franchise relationship in general, from the beginning of time until the date of the release.
The General Release is required when a franchisee desires to transfer the Franchise Agreement, the ownership of the franchisee, or the Bambu shoppe, or when the franchisee desires to enter into a successor agreement to the existing Franchise Agreement. Bambu's consent to these actions is subject to the franchisee's compliance with the terms and conditions set forth in the Franchise Agreement, including the execution and delivery of the General Release.
In practical terms, this means that before a franchisee can transfer their franchise or enter into a successor agreement, they must sign a document releasing Bambu from any potential liabilities or claims. This is a broad release, covering both known and unknown claims, which could have significant implications for the franchisee. Franchisees in California should note that they are acknowledging that they are waiving rights under California law regarding claims not known at the time of execution of the release. Franchisees in Washington should note that a release or waiver of rights may not include rights under the Washington Franchise Investment Protection Act except under specific circumstances.
The General Release is governed by Colorado law, embodying the entire agreement between the parties and superseding all prior agreements. It can only be modified in writing and does not disclaim any representations made by Bambu in the most recent franchise disclosure document. Prospective franchisees should carefully review the General Release with legal counsel to understand the full extent of the claims they are waiving and the potential impact on their rights and future relationship with Bambu.