Does the Bambu Successor Franchise Rider release claims arising from the franchise relationship?

According to Bambu's 2025 Franchise Disclosure Document, the Successor Franchise Rider does include a general release of claims against Bambu and its affiliates. To exercise the option for a successor franchise, the franchisee must execute a successor franchise rider that contains a general release of any and all claims against Bambu and its affiliates, and their respective officers, directors, employees, and agents arising out of or relating to the Franchise Agreement. This means that as a condition of renewing their franchise agreement, a franchisee must agree to release Bambu from any past, present, or future claims related to the franchise relationship.

This release covers all claims, demands, obligations, actions, liabilities, and damages of every kind, whether known or unknown, in law or in equity, 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 rider.

However, the FDD also includes riders for specific states like Hawaii, Illinois, Montana, and North Dakota that modify the general release. For example, in Hawaii, any release executed will not apply to claims arising under the Hawaii Franchise Investment Law. In Montana and North Dakota, franchisees waive rights or benefits under specific state laws related to releases. In California, franchisees acknowledge they are aware of California laws that may limit the effect of a general release regarding unknown claims. These state-specific riders indicate that the enforceability and scope of the general release can vary depending on the franchisee's location and relevant state laws.

Prospective franchisees should carefully review the Successor Franchise Rider and any applicable state-specific addenda with legal counsel to fully understand the implications of the release and how it may affect their rights. They should also be aware of the conditions under which they are required to sign this release as part of the successor franchise agreement.