Does the Bambu Successor Franchise Rider apply to claims that may exist in the future?

According to the 2025 Bambu Franchise Disclosure Document, the Successor Franchise Rider includes a release that extends to claims that may arise in the future. Specifically, when a franchisee exercises their option for a successor franchise, they must sign a rider that contains a general release of claims against Bambu. This release covers all claims, demands, obligations, actions, liabilities, and damages, whether known or unknown, that the franchisee may currently have or may discover in the future. This release applies to any issues arising from the franchise relationship from its beginning up to the date of the release.

This means that by signing the Successor Franchise Rider, a franchisee waives their right to pursue any legal claims against Bambu, even those that they are not yet aware of. This is a significant consideration for franchisees contemplating renewing their franchise agreement, as they are essentially forfeiting any potential future legal recourse against the franchisor. The FDD also includes specific clauses addressing the release of unknown claims and waivers of California law, indicating an awareness of the legal implications of such releases.

However, the Hawaii Rider to Franchise Agreement provides an exception. Any release executed will not apply to any claims that may arise under the Hawaii Franchise Investment Law. This provision and the superseding clause in the Illinois Rider to Franchise Agreement offer some protection to franchisees in those states, ensuring that they do not waive certain rights or disclaim reliance on statements made by Bambu. Franchisees should carefully review these riders and consult with legal counsel to fully understand the scope and implications of the release, especially concerning claims that may arise in the future.