What is a 7 Brew franchisee acknowledging regarding representations made about the franchise opportunity?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin.**
- (7) Other than disclosures in our franchise disclosure document, you have not received from us or our affiliates any representations or guarantees, express or implied, of a 7 BREW Store's potential volume, sales, income, or profits.
- (8) You read this Agreement and our franchise disclosure document and understand and accept that this Agreement's terms and covenants are reasonably necessary for us to maintain high product-quality and service standards (and the uniformity of those standards at each 7 BREW Store) and to protect and preserve the goodwill of the Marks.
- (9) You independently investigated the 7 BREW Store franchise opportunity and recognize that the nature of the Store's business will evolve and change over time.
- (10) Investing in a 7 BREW Store involves business risks that could result in your losing a significant portion or all of your investment.
- (11) Your business abilities and efforts are vital to your success.
- (12) We have not made any representation, warranty, or other claim regarding this 7 BREW Store franchise opportunity other than those made in this Agreement and our franchise disclosure document.
- (13) You had an opportunity to ask questions and to review materials of interest to you concerning the 7 BREW Store franchise opportunity.
- (14) You had an opportunity, and we encouraged you, to have an attorney or other professional advisor review this Agreement and all other materials we gave or made available to you.
3. Grant of Franchise
A. Grant of Franchise
Subject to this Agreement's terms, we grant you the right, and you commit, to construct, develop, and operate a Traditional 7 BREW Store at the address identified on Exhibit B (the "Store") using the Franchise System and the Marks.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to the 2025 FDD, a 7 Brew franchisee acknowledges several key aspects regarding representations about the franchise opportunity. Specifically, the franchisee confirms that, aside from the disclosures made within the franchise disclosure document itself, they have not received any explicit or implicit guarantees or representations from 7 Brew or its affiliates concerning potential sales volume, income, or profits of a 7 Brew store. This acknowledgment is crucial as it sets clear expectations and limits the franchisee's reliance on any verbal or informal promises that may have been made during the pre-sale process.
Furthermore, the franchisee acknowledges that they have independently investigated the 7 Brew franchise opportunity and understand that the nature of the business may evolve and change over time. This highlights the importance of due diligence on the franchisee's part and an acceptance that the business environment is dynamic. The franchisee also recognizes the inherent business risks involved in investing in a 7 Brew store, including the potential for losing a significant portion or all of their investment. This acknowledgment underscores the need for careful financial planning and risk assessment before committing to the franchise.
Additionally, the franchisee understands that their own business abilities and efforts are vital to the success of the 7 Brew store. This emphasizes that while 7 Brew provides a proven system and brand, the franchisee's active management and dedication are critical factors in determining the store's performance. Finally, the franchisee acknowledges that 7 Brew has not made any representations, warranties, or other claims regarding the franchise opportunity beyond what is stated in the franchise agreement and the franchise disclosure document, and that they had the opportunity to ask questions and seek professional advice before signing the agreement. These acknowledgements do not apply to franchisees and franchises subject to state franchise registration/disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin.