Is the franchisee required to confirm their understanding of certain agreement terms by signing the Franchisee Representations document for 7 Brew?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT I
FRANCHISEE REPRESENTATIONS
(This Franchisee Representations document will not be used if the franchise is to be operated in, or you are a resident of, California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin)
BREW CULTURE FRANCHISE, LLC FRANCHISEE REPRESENTATIONS
DO NOT SIGN THIS FRANCHISEE REPRESENTATIONS IF THE FRANCHISE IS TO BE OPERATED IN, OR YOU ARE A RESIDENT OF, CALIFORNIA, HAWAII, ILLINOIS, INDIANA, MARYLAND, MICHIGAN, MINNESOTA, NEW YORK, NORTH DAKOTA, RHODE ISLAND, SOUTH DAKOTA, VIRGINIA, WASHINGTON, OR WISCONSIN.
Important Instructions: Brew Culture Franchise, LLC ("we," "us," or "our") and you are ready to sign a Franchise Agreement for the development and operation of a 7 BREW Store (the "Store") and a Development Rights Rider for the development and operation of multiple 7 BREW Stores. This document's purpose is to determine whether any statements or promises were made to you that we have not authorized, 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.
Source: Item 23 — RECEIPTS (FDD pages 83–279)
What This Means (2025 FDD)
According to the 2025 7 Brew Franchise Disclosure Document, prospective franchisees are required to sign a Franchisee Representations document to confirm their understanding of the franchise agreement terms, unless they reside in or the franchise is to be operated in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin.
The purpose of this document is to ensure that no unauthorized statements or promises have been made to the franchisee that are inconsistent with the franchise documents. 7 Brew wants to verify that the franchisee understands specific terms of the agreements and their implications. By signing the document, the franchisee confirms the truthfulness of its contents, and 7 Brew will rely on this confirmation.
The Franchisee Representations document includes several statements that the franchisee must initial to confirm their understanding. These statements cover various aspects, such as the understanding that actual results may vary and 7 Brew cannot predict specific store performance, that no unauthorized representations regarding income or profitability have been made, and that the franchisee has had ample opportunity to seek advice from advisors and investigate information related to the 7 Brew system. The document also clarifies that the franchise agreement licenses rights for only one store at a specified location and that no territorial rights are granted unless specified in a Development Rights Rider. Furthermore, it emphasizes that only information within the Franchise Agreement, Development Rights Rider, or FDD can be relied upon.