Under what conditions does Bambu require the Franchisee to execute and deliver the General Release?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
ing transferred. All assets must be transferred free and clear of all liens and encumbrances, with all sales and transfer taxes paid by Franchisee. Franchisee and its owners further agree to sign general releases, in a form satisfactory to Bambu, of any and all claims against Bambu and its shareholders, member, managers, officers, directors, employees, agents, successors, and assigns; and
- d.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, a franchisee must sign a general release under two specific circumstances: when Bambu exercises its option to purchase the franchisee's store, and when the franchisee exercises their option for a successor franchise agreement.
Specifically, if Bambu decides to purchase the franchisee's Bambu store, the franchisee and its owners must sign general releases, in a form satisfactory to Bambu, relinquishing all claims against Bambu and its affiliates. This ensures that upon the sale of the franchise back to Bambu, there are no outstanding legal issues or liabilities from the franchisee.
Additionally, if a franchisee wishes to obtain a successor franchise at the end of their existing agreement, they must execute a successor franchise rider that includes a general release of any and all claims against Bambu and its affiliates. This is a condition for renewing the franchise agreement, ensuring that all past issues are resolved before the relationship continues. This requirement is in a form designated by Bambu, meaning the specific terms of the release are determined by Bambu at the time of renewal.