Does the Bambu Successor Franchise Rider release Bambu from claims brought by the Franchisee's assigns?

According to Bambu's 2025 Franchise Disclosure Document, the Successor Franchise Rider includes a general release of claims against Bambu and its affiliates. Specifically, 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, including their officers, directors, employees, and agents, arising out of or relating to the Franchise Agreement. This release is a condition for obtaining a successor franchise.

The release provision requires the franchisee, along with its affiliates, successors, assigns, officers, shareholders, directors, members, managers, agents, heirs, and personal representatives, to unconditionally release Bambu and its affiliates from all claims and liabilities. This release covers all types of claims, whether known or unknown, that the franchisee or its affiliates may have against Bambu or its affiliates, relating to any relationship or transaction with Bambu, the Franchise Agreement, or the franchise relationship itself.

Several state-specific riders modify these general release provisions. For example, in Hawaii, any release executed will not apply to claims arising under the Hawaii Franchise Investment Law. Similarly, in New York, the release does not waive rights or causes of action arising from the provisions of Article 33 of the General Business Law of the State of New York. In Montana and North Dakota, the franchisee waives rights under specific sections of their state codes related to the effect of a general release regarding unknown claims. These state-specific provisions indicate that the general release is subject to certain legal limitations and protections for franchisees in those states.

Prospective franchisees should carefully review the Successor Franchise Rider and any applicable state-specific riders with legal counsel to fully understand the scope and implications of the release, including any limitations or protections provided by state law. Franchisees should also be aware of the conditions under which they are required to sign the release, such as when exercising their option for a successor franchise.