Does the Bambu Successor Franchise Rider release Bambu from claims brought by the Franchisee's insurers?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
| Deferred Non-refundable Franchise Fees: | | | |---|---|---| | Balance Beginning of year | $ 1,436,817 | $ 1,658,775 | | Deferral of non-refundable franchise fees | 345,500 | 362,500 | | Recognition of non-refundable franchise fees | (638,862) | (584,458) | | Balance at End of Year | $ 1,143,455 | 1,436,817 | 9. 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 release and discharge 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.
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 release that extends to Bambu's insurers. The franchisee, along with its affiliates, releases Bambu and its affiliates, which includes their insurers, from all claims and liabilities related to the franchise relationship. This release covers all claims, known or unknown, that the franchisee or its affiliates may have against Bambu or its affiliates.
This means that if a franchisee's insurer were to bring a claim against Bambu related to the franchise agreement, the Successor Franchise Rider is designed to prevent such claims. The release encompasses any kind of claim, demand, obligation, action, liability, or damages, whether in law or equity, arising from the franchise relationship. This broad release is intended to protect Bambu from potential legal actions by the franchisee's insurance providers.
However, it is important to note that the FDD also includes riders specific to certain states, such as California, Hawaii and Illinois, which may modify or supersede certain provisions of the standard agreement. For example, the Hawaii rider specifies that releases executed will not apply to any claims that may arise under the Hawaii Franchise Investment Law. Franchisees should carefully review any state-specific riders to understand how they may affect the general release provisions.
Prospective franchisees should be aware of the comprehensive nature of this release and its implications for their insurance coverage and potential claims. It is advisable to consult with a legal professional to fully understand the scope and effect of the release, especially in light of any state-specific laws or riders that may apply.