Does the 7 Brew franchise agreement require Exhibit B to accurately describe all owners and their interests as of the effective date?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
r indirectly, at least a twenty-five percent (25%) ownership interest in you, we may specify who among your ownership group must sign our Guaranty.
F. Your Form and Structure
As a corporation, limited liability company, or general, limited, or limited liability partnership (each, an "Entity"), you agree and represent that:
- (1) Y
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
Yes, according to 7 Brew's 2025 Franchise Disclosure Document, if the franchisee is an entity, Exhibit B to the franchise agreement must completely and accurately describe all of the owners and their interests in the entity as of the effective date of the agreement. This includes both direct and indirect ownership interests. This requirement ensures that 7 Brew knows exactly who owns and controls its franchisees.
This provision is important for 7 Brew because it allows them to assess the qualifications and suitability of all individuals involved in the franchise ownership. It also helps 7 Brew to enforce the franchise agreement and protect its brand standards, as they have a clear record of who is responsible for the franchise's operations.
For a prospective franchisee, this means that they must provide full and accurate information about all owners and their respective ownership percentages when signing the franchise agreement. Any changes in ownership must be disclosed and may require 7 Brew's approval, as detailed elsewhere in the FDD. Failure to accurately disclose ownership information could be a breach of the franchise agreement and could lead to termination of the franchise.