What effect does the 'No Waiver or Disclaimer of Reliance' provision have on statements signed by a 7 Brew franchisee in applicable states?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
The following provision applies only to franchisees and franchises that are subject to the state franchise registration/disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin:
No statement, questionnaire, or acknowledgement signed or agreed to by you 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 us, any franchise seller, or any other person acting on our behalf. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to the 2025 FDD, the 'No Waiver or Disclaimer of Reliance' provision outlined in Exhibit G applies specifically to 7 Brew franchisees and franchises governed by state franchise registration/disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin. This provision ensures that no statement, questionnaire, or acknowledgment signed by the franchisee can waive claims under applicable state franchise law, including claims related to fraud in the inducement.
Furthermore, this provision prevents franchisees from disclaiming reliance on any statements made by 7 Brew, its franchise sellers, or anyone acting on its behalf. This means that franchisees in these specified states retain their right to pursue claims based on misrepresentations or misleading statements made during the franchise sales process, regardless of any documents they may have signed. The provision explicitly states that it supersedes any other conflicting terms in any document executed in connection with the franchise agreement.
In practical terms, this addendum strengthens the protections afforded to 7 Brew franchisees in the listed states by preserving their legal rights and recourse in the event of disputes or misrepresentations. It prevents 7 Brew from using standardized waivers or disclaimers to shield itself from liability for statements made during the franchise sales process. This ensures that franchisees can hold 7 Brew accountable for the accuracy and truthfulness of the information provided to them.
Prospective franchisees in these states should carefully review Exhibit G and understand their rights under this provision. It is advisable to consult with an attorney to fully understand the implications of this provision and how it may affect their franchise agreement with 7 Brew.