What is included in the definition of 'Claims' for a 7 Brew franchise owner?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
rities Department of Financial Institutions 4822 Madison Yards Way, North Tower Madison, Wisconsin 53705 (608) 266-2139
(state administrator)
Division of Securities Department of Financial Institutions 4822 Madison Yards Way, North Tower Madison, Wisconsin 53705 (608) 266-9555
EXHIBIT H
SAMPLE GENERAL RELEASE
BREW CULTURE FRANCHISE, LLC
GRANT OF FRANCHISOR CONSENT AND FRANCHISEE RELEASE
| Traditional 7 BREW Store Number | Traditional 7 BREW Store to be Open and Operating in Territory by (Deadline) | |---|---| | | | | | | | | | | | | | | | | | | Consistent with the previous introduction, you, on behalf of yourself and your successors, heirs, executors, administrators, personal representatives, agents, assigns, partners, owners, directors, officers, principals, employees, and affiliated entities (collectively, the "Releasing Parties"), hereby forever release and discharge us and our past, present, and future parent companies, subsidiaries, affiliates, investors, investment funds, and other related entities, and each of our and their respective past, present, and future officers, directors, owners, principals, employees, agents, executors, administrators, representatives, successors, and assigns (collectively, the "7 BREW Parties") from any and all claims, damages, demands, debts, causes of action, suits, duties, liabilities, costs, and expenses of any nature and kind, whether presently known or unknown, vested or contingent, suspected or unsuspected (all such matters, collectively, "Claims"), that you and any other Releasing Party now have, ever had, or, but for this Consent, hereafter would or could have against any 7 BREW Party (1) arising out of or related in any way to the 7 BREW Parties' performance of or alleged failure to perform their obligations under the Franchise Agreement before the date of your signature below, (2) arising out of or related in any way to our offer and grant to you of your 7 BREW Store franchise, or (3) otherwise arising out of or related in any way to your and the other Releasing Parties' relationship, from the beginning of time to the date of your signature below, with any of the 7 BREW Parties.
The released Claims include, but are not limited to, any Claim alleging violation of any deceptive or unfair trade practices laws, franchise laws, or other local, municipal, state, federal, or other laws, statutes, rules, or regulations. You and the other Releasing Parties acknowledge that you and they may after the date of the signatures below discover facts different from, or in addition to, those facts currently known to you and them, or which you and they now believe to be true, with respect to the Claims released by this document. You and the other Releasing Parties nevertheless agree that the release set forth in this document has been negotiated and agreed on despite such acknowledgement and despite any federal or state statute or common law principle which may provide that a general release does not extend to claims which are not known to exist at the time of execution.
You, on behalf of yourself and the other Releasing Parties, further covenant not to sue any 7 BREW Party on any Claim released by this document and represent that you have not assigned any Claim released by this document to any individual or entity that is not bound by this document.
We also are entitled to a release and covenant not to sue from your owners. By his, her, or their separate signatures below, your owners likewise grant to us the release and covenant not to sue provided above.
Source: Item 23 — RECEIPTS (FDD pages 83–279)
What This Means (2025 FDD)
According to the 2025 FDD, the term "Claims" for a 7 Brew franchisee encompasses a broad range of potential legal issues. It includes any and all claims, damages, demands, debts, causes of action, suits, duties, liabilities, costs, and expenses of any nature, whether known or unknown, vested or contingent, suspected or unsuspected. This definition is designed to be comprehensive, covering virtually any type of legal issue that could arise.
The FDD specifies that these released claims include, but are not limited to, any claim alleging violation of deceptive or unfair trade practices laws, franchise laws, or other local, municipal, state, federal, or other laws, statutes, rules, or regulations. This means that franchisees are giving up their right to sue 7 Brew for a wide array of potential legal violations, including those related to franchise law and trade practices. The release extends to issues arising from the franchisor's performance or failure to perform under the Franchise Agreement, the offer and grant of the franchise, and the overall relationship between the franchisee and 7 Brew.
However, the release of claims does not apply to claims arising under the Washington Franchise Investment Protection Act. Additionally, California-based franchisees acknowledge that they are familiar with Section 1542 of the Civil Code of the State of California, which states that a general release does not extend to claims that the releasing party does not know or suspect to exist at the time of executing the release. Despite this, California franchisees waive their rights under this section, meaning they are giving up their right to sue even for claims they are unaware of at the time of signing the release. Prospective franchisees should carefully consider the implications of this broad release and seek legal counsel to fully understand their rights and obligations.