Until what date does the release in the Bambu Successor Franchise Rider extend?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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 releases and discharges 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. Without limiting the foregoing, Released Claims includes, but is not limited to, all claims, demands, obligations, actions, liabilities and damages, known or unknown, in any way arising from or relating to: (i) any relationship or transaction with Bambu or the Bambu Affiliates, (ii) the Franchise Agreement or any related agreements, and (iii) the franchise relationship, from the beginning of time until the date of this Release.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to the 2025 Bambu Franchise Disclosure Document, the release in the Successor Franchise Rider extends to the date of the release itself. As part of acquiring successor franchise rights, a franchisee must execute a successor franchise rider that includes a general release of all claims against Bambu and its affiliates. This release covers any claims arising from or related to the Franchise Agreement.
The release encompasses all claims, demands, obligations, actions, liabilities, and damages, whether known or unknown, that the franchisee or their affiliates may have against Bambu or its affiliates. This includes claims related to any relationship or transaction with Bambu, the Franchise Agreement, or the franchise relationship itself. The release is effective from the beginning of time until the date the rider is signed.
For franchisees in California, the FDD acknowledges that California law may limit the effect of a general release regarding unknown claims. Specifically, Section 1542 of the California Civil Code states that a general release does not extend to claims the creditor doesn't know or suspect to exist at the time of execution, which, if known, would have materially affected the settlement. Therefore, a prospective franchisee should carefully consider the implications of this release and consult with legal counsel to understand its full scope and impact, especially in light of California law.