What is the exception to the release requirements in the 7 Brew Franchise Agreement related to renewal, sale, or assignment/transfer?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS RIDER is made and entered into by and between BREW CULTURE |
|---|
| FRANCHISE, LLC, a Wyoming limited liability company whose principal business address is |
| 2710 S. 48th Street, Springdale, Arkansas 72762 ("we," "us," or "our"), and, a |
| ("you" or "your"). |
| 1. |
| BACKGROUND. We and you are parties to that certain Franchise Agreement |
| dated, 20 (the "Franchise Agreement"). This Rider is annexed |
| to and forms part of the Franchise Agreement. This Rider is being signed because (a) you are a |
| resident of North Dakota, and the 7 BREW Store you will operate under the Franchise Agreement |
| will be located in North Dakota, or (b) any of the franchise offer or sales activity relating to the |
| Franchise Agreement occurred in North Dakota. |
| 2. |
| RELEASES. The following language is added at the end of Sections 4.A, 16.A, |
| 16.C(2)(i), 16.G, 17, and 19.F(3) of the Franchise Agreement: |
| Any release executed will not apply to the extent otherwise prohibited by applicable |
| law with respect to claims arising under the North Dakota Franchise Investment |
| Law. |
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to the 2025 7 Brew Franchise Disclosure Document, a rider is made and entered into by and between Brew Culture Franchise, LLC and the franchisee if the franchisee is a resident of North Dakota, and the 7 Brew store they operate under the Franchise Agreement will be located in North Dakota, or any of the franchise offer or sales activity relating to the Franchise Agreement occurred in North Dakota.
The FDD states that any release executed will not apply to the extent otherwise prohibited by applicable law with respect to claims arising under the North Dakota Franchise Investment Law. This means that while 7 Brew generally requires franchisees to sign a release of claims against them and their affiliates during certain transactions like renewal, sale, or transfer, this requirement has an exception for franchisees in North Dakota.
Specifically, if a claim arises under the North Dakota Franchise Investment Law, the release will not be applicable to that claim. This protects the rights of North Dakota franchisees under their state's franchise laws, ensuring they do not unknowingly waive their legal protections when signing a general release as part of a franchise transaction.