Does the Manufacturer represent that they have the legal right to enter into the agreement with 7 Brew?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
ARTICLE 6 REPRESENTATIONS AND WARRANTIES
- (a) Manufacturer hereby represents to Owner that:
- (i) Manufacturer has the full legal right, power, and authority to enter into this Agreement.
- (ii) This Agreement is the legal, valid, and binding obligation of Manufacturer, enforceable against Manufacturer in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, or other similar laws of general application, or by general principles of equity.
- (iii) Manufacturer is not subject to, nor is it aware of, any pending or threatened order, injunction, enforcement action, or other proceeding by any local, state, or federal governmental agency regarding the manufacturing processes, storage conditions, or purity of any products produced by Manufacturer.
- (iv) The signing and delivery of this Agreement by Manufacturer and the performance by Manufacturer of all of Manufacturer's obligations under this Agreement will not
breach any agreement to which Manufacturer is a party, or give any person the right to accelerate any obligation of Manufacturer; violate any law, judgment, or order to which Manufacturer is subject; or require the consent, authorization, or approval of any person, including but not limited to any governmental body.
- (v) Manufacturer represents, warrants and covenants to and with Owner that it will have and maintain, at all times during the construction of the Unit, Worker's Compensation insurance, Commercial Comprehensive General Liability insurance with completed operations coverage, and Builder's Risk and/or casualty insurance for the full replacement cost of the Unit to insure Manufacturer and Owner during the progress of construction on the Unit.
Source: Item 23 — RECEIPTS (FDD pages 83–279)
What This Means (2025 FDD)
According to the 2025 7 Brew Franchise Disclosure Document, the Manufacturer represents that it possesses the legal authority to enter into the agreement. Specifically, the Manufacturer warrants that it has the full legal right, power, and authority to enter into the agreement with the Owner (franchisee). This indicates that the Manufacturer is legally capable of fulfilling its obligations as defined in the agreement.
Additionally, the Manufacturer represents that the agreement constitutes a legal, valid, and binding obligation, enforceable against the Manufacturer, subject to standard limitations such as bankruptcy or general principles of equity. This provides assurance to the franchisee that the agreement is legally sound and that 7 Brew is bound by its terms.
Furthermore, the Manufacturer confirms that entering into the agreement and fulfilling its obligations will not breach any existing agreements, violate any laws or orders, or require consent from any third party or governmental body. This representation aims to assure the franchisee that the Manufacturer's participation in the agreement is free from legal conflicts or encumbrances, thereby reducing potential risks for the franchisee.