Does the Bambu Successor Franchise Rider release Bambu from claims brought by the Franchisee's members?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
45,500 | 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. 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 Rider.
[APPLIES ONLY IN CALIFORNIA] 7(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 or her favor at the time of executing the release which, if known by him or her, 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 general release of claims against Bambu and its affiliates. This release extends to the franchisee, their affiliates, and their respective members. Therefore, the Successor Franchise Rider does release Bambu from claims brought by the Franchisee's members.
The FDD states that the franchisee, on behalf of themselves and their affiliates (including members), releases Bambu from all claims and liabilities arising from any relationship or transaction with Bambu, the Franchise Agreement, or the franchise relationship itself. This release covers both known and unknown claims from the beginning of time until the date of the rider.
It is important to note that there are some state-specific exceptions to these releases. For example, in California and Montana, the release includes a waiver of rights under laws that limit the effect of a general release regarding unknown claims. Similarly, in Hawaii, any release executed will not apply to claims arising under the Hawaii Franchise Investment Law. These exceptions may limit the scope of the release in certain jurisdictions.
As a condition of exercising 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.