Does the Bambu Successor Franchise Rider release Bambu from claims brought by the Franchisee's managers?
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 general release of claims against Bambu. This release extends to 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."
In practical terms, this means that as a condition of obtaining a successor franchise, the franchisee must release Bambu from any and all claims, demands, obligations, actions, liabilities, and damages of every kind, whether known or unknown, that the franchisee or their affiliates (including managers) may have against Bambu. This release covers 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.
This requirement is fairly standard in franchising, as it aims to protect the franchisor from potential future litigation related to the franchise relationship. However, franchisees should carefully consider the implications of signing such a broad release, especially concerning any existing or potential disputes. Franchisees in California should note the specific mention of California Civil Code Section 1542, which addresses the release of unknown claims, and understand their rights and obligations under California law. Franchisees should consult with a legal professional to fully understand the scope and impact of the release before signing the Successor Franchise Rider.