Does the Bambu Successor Franchise Rider release Bambu from claims brought by the Franchisee's heirs?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
itions set forth in the Franchise Agreement including, without limitation, the | | execution and delivery by Franchisee to Bambu of this Release. |
- 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."
Franchisee and the Franchisee Affiliates waive and relinquish every right or benefit which they have, or may have, under Section 1542 of the Civil Code of the State of California, 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.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to the 2025 Bambu Franchise Disclosure Document, the Successor Franchise Rider includes a release that extends to the franchisee's heirs and personal representatives. Specifically, when a franchisee exercises their option for a successor franchise, they must execute a rider that contains a general release of claims against Bambu. This release covers the franchisee, their affiliates, and their respective current and former successors, assigns, officers, shareholders, directors, members, managers, agents, heirs, and personal representatives, collectively referred to as "Franchisee Affiliates."
This means that by signing the Successor Franchise Rider, the franchisee and their "Franchisee Affiliates" release Bambu and its affiliates from any and all claims, demands, obligations, actions, liabilities, and damages of every kind and nature, whether known or unknown, in law or in equity. The release covers claims that the franchisee or their affiliates may have against Bambu or that may be discovered in the future. This includes claims 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.
It is important to note that this release may be subject to certain state laws. For example, in California, the release of unknown claims is addressed, referencing Section 1542 of the Civil Code. Similar waivers and relinquishments are mentioned for Montana and North Dakota, indicating that franchisees are giving up rights or benefits they may have under those states' laws regarding unknown claims. Franchisees should carefully review these provisions and understand the implications of waiving such rights, as they could affect their ability, or their heirs' ability, to bring future claims against Bambu.