Does the Bambu Successor Franchise Rider release Bambu from claims brought by the Franchisee's personal representatives?
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 the franchisee's personal representatives. This means that the franchisee, along with their affiliates, successors, assigns, officers, shareholders, directors, members, managers, agents, heirs, and personal representatives, agrees to release Bambu from any and all claims, demands, obligations, actions, liabilities, and damages. This release covers all claims, whether known or unknown, that the franchisee or their affiliates may have against Bambu.
This release encompasses 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. The inclusion of "personal representatives" in the release means that if the franchisee were to pass away, their estate or legal representatives would also be bound by this release, preventing them from pursuing claims against Bambu on behalf of the deceased franchisee.
It is important for a prospective Bambu franchisee to carefully consider the implications of this release. While it is a standard legal practice for franchisors to seek releases to protect themselves from potential liabilities, franchisees should understand that they are giving up their right to sue Bambu for any past, present, or future issues related to the franchise. Franchisees should consult with an attorney to fully understand the scope and impact of this release before signing the Successor Franchise Rider.
Notably, the FDD includes specific clauses addressing the release of unknown claims and waivers of state laws in California, Montana, and North Dakota. These clauses highlight that franchisees are acknowledging they may discover new facts after signing the release but are still intending to fully release all claims against Bambu. This further emphasizes the importance of understanding the full implications of the release before agreeing to it.