Does the Bambu Successor Franchise Rider require the Franchisee to defend Bambu from Released Claims?

According to Bambu's 2025 Franchise Disclosure Document, the Successor Franchise Rider includes a clause where the franchisee agrees to defend, indemnify, and hold harmless Bambu and its affiliates from any and all released claims. This obligation arises if the franchisee or their affiliates assert any released claims, positions, defenses, or arguments that contradict Section 7(b) of the Rider. This means a franchisee seeking a successor franchise must not pursue any prior claims against Bambu.

The release covers all claims, demands, obligations, actions, liabilities, and damages of every kind, whether known or unknown, in law or in equity, that the franchisee or their affiliates may have against Bambu or its affiliates. These released claims include those 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 release.

This requirement is further reinforced by waivers and relinquishments of rights or benefits under specific sections of the North Dakota Century Code and similar provisions of other laws. The franchisee acknowledges that they may discover new facts but still intend to fully and finally release all claims. This underscores the comprehensive nature of the release and the franchisee's commitment to defending Bambu against any such claims.

For a prospective Bambu franchisee, this means that when renewing their franchise agreement, they must be willing to forgo any existing or potential future claims against Bambu. Failure to do so could result in the franchisee being obligated to defend and indemnify Bambu from those claims. This is a significant consideration for any franchisee contemplating renewal, as it requires them to assess their relationship with Bambu and any potential legal issues before committing to a successor franchise agreement.