Does the Bambu Successor Franchise Rider release Bambu from claims brought by the Franchisee's shareholders?

According to Bambu's 2025 Franchise Disclosure Document, the Successor Franchise Rider includes a general release of claims against Bambu and its affiliates. This release extends to the franchisee, its affiliates, and their respective shareholders. Therefore, the Successor Franchise Rider does release Bambu from claims brought by the franchisee's shareholders.

The FDD states that to exercise 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, including their officers, directors, employees, and agents, arising out of or relating to the Franchise Agreement. This requirement is part of the conditions that the franchisee must meet to be granted a successor franchise.

The release covers all claims, demands, obligations, actions, liabilities, and damages of every kind and nature, whether known or unknown, in law or in equity, which the franchisee or its affiliates may have against Bambu or its affiliates. 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. Franchisees in California should note the specific waiver of California Civil Code Section 1542 regarding unknown claims.

It is important for prospective Bambu franchisees to carefully review the Successor Franchise Rider and understand the scope of the release, including the implications for any potential claims they or their shareholders may have against Bambu. Franchisees should seek legal counsel to fully understand the ramifications of signing such a release.