What must the franchisee do to confirm they understand the risks associated with the 7 Brew franchise?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
orized, that do not appear in or are inconsistent with our franchise documents, and/or that may be untrue, inaccurate, or misleading. We also want to be sure that you understand certain terms of the agreements you will sign and their ramifications. Please review each of the following statements carefully and do not sign this document if it contains anything you think might be untrue. If you sign this document, you are confirming the truth of what it says. In addition, if you sign it, we will take actions in reliance on the truth of what it says.
Initial the spaces after the statements to confirm your understanding and the accuracy of the statements.
| Name of Prospective Franchisee: (the "Franchisee") |
|---|
| Each of the undersigned represents that all of the following statements are true: |
| 1. |
| Each of the undersigned has independently investigated us; our affiliates; the |
| 7 BREW Store system; the risks, burdens, and nature of the business that Franchisee will conduct |
| under the Franchise Agreement; the Store; the shopping or strip center or other location for the |
| Store (if already selected); and the Store's market area. |
| *Insert initials into the following blank to confirm this statement: |
| 2. |
| Each of the undersigned understands that the business Franchisee will conduct |
| under the Franchise Agreement involves risk, and any success or failure will be substantially |
| influenced by Franchisee's ability and efforts, the viability of the Store's location, competition |
| from other businesses, interest rates, inflation, labor and supply costs, lease terms, and other |
| economic and business factors. |
Source: Item 23 — RECEIPTS (FDD pages 83–279)
What This Means (2025 FDD)
According to the 2025 7 Brew Franchise Disclosure Document, prospective franchisees must initial specific statements to acknowledge their understanding of the risks involved. This includes confirming that they have independently investigated 7 Brew, its system, and the nature of the business they will be conducting under the Franchise Agreement.
Specifically, franchisees must initial to confirm they understand that the 7 Brew business involves risk and that success or failure will be substantially influenced by their own abilities and efforts. Other factors include the viability of the store's location, competition from other businesses, interest rates, inflation, labor and supply costs, and lease terms, as well as other economic and business factors.
Furthermore, franchisees must initial to acknowledge that nothing stated or promised outside of the Franchise Agreement, Development Rights Rider, or FDD can be relied upon. This emphasizes the importance of basing decisions solely on the documented information provided by 7 Brew. By initialing these statements, the franchisee confirms their awareness of these critical aspects before entering into the franchise agreement.