What are 'Released Claims' in the context 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.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, 'Released Claims' encompass a broad range of potential legal actions that a franchisee agrees to waive against Bambu and its affiliates. This waiver includes all claims, demands, obligations, actions, liabilities, and damages, regardless of their nature or whether they are known or unknown at the time of the release. This means a franchisee is giving up the right to sue Bambu for virtually any reason related to the franchise agreement.
The scope of 'Released Claims' is extensive, covering any aspect of the relationship between the franchisee and Bambu. This includes, but is not limited to, any transactions, the Franchise Agreement itself, and the overall franchise relationship. The release applies from the beginning of time until the date the release is executed, meaning that any past, present, or future claims are potentially included. This has significant implications for a prospective franchisee, as it limits their ability to seek legal recourse against Bambu, even for issues that may arise or become apparent in the future.
It is important to note that the FDD includes specific clauses addressing the release of unknown claims, particularly concerning California, Montana, and North Dakota law. These clauses highlight that franchisees are acknowledging they may later discover facts that could have materially affected their decision to sign the release. Despite this possibility, the franchisee is still agreeing to fully and finally release all claims. Bambu also requires the franchisee to defend and indemnify them against any claims brought contrary to this release, adding another layer of protection for the franchisor.
Prospective franchisees should carefully consider the implications of this general release and seek legal counsel to fully understand their rights and obligations. The breadth of the 'Released Claims' means that franchisees are taking on a significant risk by waiving their right to sue Bambu, even for issues they are not currently aware of. This is a standard practice in franchising, but the specific terms and conditions can vary, so it is crucial to review the release carefully.