What is the franchisee required to do before signing the Franchisee Representations document for a 7 Brew franchise?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
atement: | | 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. | | *Insert initials into the following blank to confirm this statement: |
| December29, | December31, | | December25, | |---|---|---|---| | 2024 | 2023 | 2022 | |
7.2 Actual results vary from unit to unit and from time period to time period, and we cannot estimate, project, or predict the results of any particular 7 BREW Store.
*Insert initials into the following blank to confirm this statement: ___
7.3 We have specifically instructed our affiliates, and our and their respective officers, directors, employees, and agents, that except as provided in Item 19 of our FDD, they are not permitted to make any representation, warranty, promise, guaranty, prediction, projection, or other statement or give other information as to income, sales volume, or profitability, either generally or with respect to any particular 7 BREW Store.
*Insert initials into the following blank to confirm this statement: ___
- Before signing the Franchise Agreement, Development Rights Rider, or any related documents, the undersigned Franchisee has had ample opportunity: (a) to discuss the particular agreement, any related document, and the business Franchisee will conduct with its, his, or her own attorneys, accountants, and real estate and other advisors; (b) to contact our existing franchisees; and (c) to investigate all statements and information made or given by us or our affiliates, or our or their respective officers, directors, employees, and agents, relating to the 7 BREW Store system, the Store, and any other subject.
*Insert initials into the following blank to confirm this statement: ___
- Each of the undersigned understands that the Franchise Agreement licenses certain rights for one, and only one, Store, located only at the location now specified (or to be specified) in the Franchise Agreement, and that, except as may be provided in a Development Rights Rider with us, no "exclusive," "expansion," "protected," "non-encroachable," or other territorial rights, rights of first refusal, or rights of any other kind are granted or have been promised concerning the shopping or strip center or other site at which the Store is located, the contiguous or any other market area of the Store, or any other existing or potential 7 BREW Store or geographic territory.
*Insert initials into the following blank to confirm this statement: ___
- Each of the undersigned understands that nothing stated or promised that is not specifically set forth in the Franchise Agreement, Development Rights Rider, or FDD can be relied upon by the undersigned or Franchisee.
*Insert initials into the following blank to confirm this statement: ___
- Each of the undersigned understands that we and our affiliates may sell or transfer our assets, our trademarks, and/or the 7 BREW Store system outright to a third party; may go public; may engage in a private placement of some or all of our and our affiliates' securities; may merge, acquire other companies, or be acquired by another company; and/or may undertake a refinancing, a recapitalization, a leveraged buy-out, or other economic or financial restructuring.
| *Insert initials into the following blank to confirm this statement: | ||
|---|---|---|
| 12. |
Source: Item 23 — RECEIPTS (FDD pages 83–279)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, before signing the Franchisee Representations document, a prospective franchisee must confirm their understanding and the accuracy of certain statements by initialing in the provided blanks. These statements cover various aspects of the franchise agreement and the franchisee's understanding of the business. Specifically, the franchisee must acknowledge that actual results vary and 7 Brew cannot predict the success of any particular store. They must also acknowledge that 7 Brew has instructed its representatives not to make any unauthorized representations about income, sales volume, or profitability, except as provided in Item 19 of the FDD.
Furthermore, before signing the Franchise Agreement, Development Rights Rider, or any related documents, the franchisee must confirm they have had ample opportunity to discuss the agreements with their own advisors, contact existing franchisees, and investigate all statements and information provided by 7 Brew. The franchisee must also acknowledge that the Franchise Agreement licenses rights for only one store at a specified location, and that no exclusive territorial rights are granted unless specified in a Development Rights Rider.
Additionally, the franchisee must understand that nothing stated or promised outside of the Franchise Agreement, Development Rights Rider, or FDD can be relied upon. They must also acknowledge that 7 Brew may sell or transfer its assets, trademarks, or the 7 Brew system to a third party, undergo financial restructuring, or engage in other business transactions. Finally, the franchisee must confirm they have independently investigated 7 Brew, the 7 Brew system, and the risks associated with the business, and that they understand the business involves risk and success depends on various factors.