Does the Bambu Successor Franchise Rider apply to suspected claims?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: Receipts]
- 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."
[Item 23: Receipts]
"A general release does not extend to claims which the creditor does not know or suspect to exist in the creditor's favor at the time of executing the release, which if known by the creditor, must have materially affected the creditor's settlement with the debtor."
Franchisee and the Franchisee Affiliates waive and relinquish every right or benefit which they have, or may have, under Section 9-13-02 of the North Dakota Century Code, 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 7(c) of this Rider.
[Item 23: Receipts]
"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 his settlement with the debtor."
Franchisee and the Franchisee Affiliates waive and relinquish every right or benefit which they have, or may have, under Section 28-1-1602 of the Montana Code Annotated, and under any similar provisions of any other law (as may be applicable to this Agreement), to the fullest extent that they may lawfully waive such right or benefit pertaining to the subject matter of this Rider.
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 Franchisee and the Franchisee Affiliates now know or believe to be true with respect to the subject matter of this Rider, but that it is their 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 behalf of Franchisee) of any Released Claims, positions, defenses, or arguments contrary to this Section 7(b) of this Rider.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the Successor Franchise Rider includes a general release of claims against Bambu and its affiliates. This release extends to claims, demands, obligations, actions, liabilities, and damages of every kind, whether known or unknown, that the franchisee or their affiliates may have against Bambu or its affiliates. This includes claims that may be discovered in the future, arising from any relationship or transaction with Bambu, the Franchise Agreement, or the franchise relationship itself.
For franchisees in California, the Bambu agreement addresses the waiver of California law regarding unknown claims. Specifically, it references Section 1542 of the California Civil Code, which states that a general release does not extend to claims the creditor does not know or suspect to exist at the time of executing the release, which, if known, would have materially affected the settlement. By signing the release, franchisees acknowledge they are aware of this provision and waive their rights under it.
Similarly, for franchisees in Montana and North Dakota, the Bambu agreement includes clauses where franchisees waive rights or benefits under Montana Code Annotated Section 28-1-1602 and North Dakota Century Code Section 9-13-02, respectively, or similar provisions in other laws. Franchisees acknowledge they may discover new or different facts but intend to fully release all claims, known or unknown, suspected or unsuspected. They also agree to defend and indemnify Bambu against any claims arising from the franchisee asserting positions contrary to this waiver.
These clauses in the Bambu Successor Franchise Rider have significant implications for prospective franchisees. By signing the release, franchisees potentially give up their rights to pursue claims against Bambu, even if those claims are based on facts not yet known or suspected. Franchisees should carefully consider the scope of this release and consult with an attorney to understand its potential impact on their rights.