In Washington, can a Bambu franchisee disclaim reliance on statements made by the franchisor or their representatives?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
supersedes any other term of any document executed in connection with the franchise. Section 24.25 of the Agreement is deemed modified accordingly.
WASHINGTON RIDER TO FRANCHISE AGREEMENT AND RELATED AGREEMENTS
- The following statement is added to Section 4.1:
The Securities Administrator of the State of Washington has determined that, based on Bambu's financial condition, Bambu may not be able to fulfill its obligations to Franchisee in the establishment and opening of the Bambū shoppe. Bambu has elected to assure financial capability by deferring the payment of all initial fees owed to Bambu until Bambu has completed its initial obligations under the Franchise Agreement and Franchisee's Bambū shoppe opens.
- In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW will prevail.
RCW 19.100.180 may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise. There may also be court decisions which may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to the 2025 Bambu Franchise Disclosure Document, a Washington franchisee cannot disclaim reliance on statements made by Bambu or its representatives. The Washington Rider to the Franchise Agreement explicitly states that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor or its representatives. This provision overrides any conflicting terms in any document related to the franchise agreement.
This means that any attempt by Bambu to include language in the franchise agreement that would prevent a franchisee from claiming they relied on statements made by Bambu during the franchise sales process is invalid in Washington. This protection is particularly important for prospective franchisees as it ensures they can hold Bambu accountable for any misrepresentations or false promises made to induce them into investing in the franchise.
This rider provides significant legal protection for Bambu franchisees in Washington, ensuring they retain their rights to pursue claims against the franchisor based on statements made during the franchise sales process. It is a crucial safeguard against potential fraud or misrepresentation, offering franchisees a stronger legal standing should disputes arise.