If 7 Brew consents to a transfer, does this waive any claims that 7 Brew has against the franchisee?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
- i. before the transfer's proposed effective date, you (and your transferring owners) sign a general release, in a form satisfactory to us, of any and all claims against us and our affiliates and our and their respective owners, officers, directors, employees, representatives, agents, successors, and assigns;
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, if a franchisee seeks to transfer their franchise rights, they must sign a general release, in a form satisfactory to 7 Brew, which releases 7 Brew from any and all claims against them and their affiliates. This release must be signed before the proposed effective date of the transfer.
This requirement means that as part of the transfer process, the franchisee gives up any existing or potential legal claims they might have against 7 Brew. This is a standard practice in franchising to ensure a clean break between the transferring franchisee and the franchisor. The franchisee should carefully consider this release and consult with an attorney to understand the full implications before signing.
In addition to the release, the franchisee must also ensure that all outstanding payments, such as royalties, brand fund contributions, and tech fees, are paid up to date. The transferee must also meet 7 Brew's standards for new franchisees and agree to upgrade the store to current specifications. These conditions ensure that the transfer maintains the integrity of the 7 Brew brand and protects the interests of other franchisees.