Under what conditions does a statement, questionnaire, or acknowledgment signed by a Bambu franchisee NOT waive claims under state franchise law?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor.
This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, a statement, questionnaire, or acknowledgment signed by a franchisee in connection with starting their franchise will not waive claims under state franchise law. This includes claims of fraud in the inducement or disclaiming reliance on statements made by Bambu or its representatives. This protection is highlighted in addenda for several states, including New York, Hawaii, Virginia, Washington, Illinois, Indiana, Maryland, and Minnesota, indicating a broad effort to ensure franchisees retain their legal rights under state laws.
This provision is designed to protect franchisees from inadvertently giving up their rights through standard paperwork at the beginning of the franchise relationship. By explicitly stating that such documents do not waive state franchise law claims, Bambu aims to provide a level of assurance to potential franchisees that they can still pursue legal remedies if they believe they have been misled or defrauded. This applies regardless of any other terms in the franchise agreement or related documents.
For a prospective Bambu franchisee, this means that signing a statement, questionnaire, or acknowledgment during the initial phase of setting up the franchise does not prevent them from later bringing a claim under state franchise law. This is particularly relevant if the franchisee believes they were induced into the agreement through fraudulent statements or if they relied on information provided by Bambu that turned out to be false. This clause aims to override any conflicting terms in other documents, reinforcing the franchisee's right to legal recourse under state laws.
It is important for prospective franchisees to understand that while this provision protects their right to bring claims, it does not guarantee a successful outcome in any legal action. Franchisees should still carefully review all documents and seek legal advice to fully understand their rights and obligations. This protection against waiving state law claims is a significant benefit, ensuring that franchisees are not unknowingly forfeiting their legal options at the outset of the franchise relationship.