When 7 Brew consents to a transfer, does this constitute a representation of the fairness of contract terms between the franchisee and the transferee?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
Our consent to any transfer is not a representation of the fairness of any contract terms between you (or your owner) and the transferee, a guarantee of the Store's or transferee's prospects of success, or a waiver of any claims we have against you (or your owners) or of our right to demand full compliance with this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, 7 Brew's consent to a transfer of a franchise does not constitute a representation regarding the fairness of the contract terms between the franchisee and the transferee. This means that 7 Brew is not endorsing or guaranteeing the terms agreed upon between the selling franchisee and the buyer.
7 Brew also clarifies that its consent to a transfer does not guarantee the success of the store or the transferee. Furthermore, 7 Brew retains all rights to claims against the transferring franchisee and can still demand full compliance with the franchise agreement, even after the transfer is approved.
This provision protects 7 Brew from liability related to the transfer agreement and ensures that the new franchisee is solely responsible for the store's performance and adherence to the franchise agreement. A prospective franchisee should carefully review all transfer-related documents and conduct their own due diligence to assess the fairness of the terms and the potential for success.