Does the introductory text for 7 Brew specify the governing law applicable to the agreement?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
- GOVERNING LAW. The following language is added at the end of Section 21.G of the Franchise Agreement:
Notwithstanding the foregoing, to the extent required by the North Dakota Franchise Investment Law, North Dakota law will apply to this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to the 2025 7 Brew Franchise Disclosure Document, the standard franchise agreement does not specify which state's laws govern the agreement in the introductory text. However, there is a rider that addresses governing law under specific circumstances.
Specifically, for franchisees operating in North Dakota, the rider modifies Section 21.G of the Franchise Agreement to state that North Dakota law will apply to the agreement to the extent required by the North Dakota Franchise Investment Law. This ensures that franchisees in North Dakota receive the protections afforded to them under their state's franchise laws.
This modification is outlined in Item 22, Contracts, and it is important for prospective franchisees, particularly those in North Dakota, to understand how state-specific laws may impact the enforcement and interpretation of their franchise agreement. Franchisees outside of North Dakota should consult with 7 Brew to understand which state laws govern their franchise agreement.