What does the 7 Brew manufacturer represent regarding their authority to enter into the agreement?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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 7 Brew's 2025 Franchise Disclosure Document, the manufacturer represents its legal authority to enter into the agreement with the franchisee. Specifically, the manufacturer confirms that it possesses the full legal right, power, and authority to enter into the agreement. This representation is crucial as it assures the franchisee that the manufacturer is not acting beyond its legal capacity or in violation of any existing obligations.
Additionally, the manufacturer represents that the agreement constitutes a legal, valid, and binding obligation, enforceable against them in accordance with its terms. However, this enforceability may be limited by standard legal principles such as bankruptcy, insolvency, or other similar laws or general principles of equity. This acknowledgment provides a balanced perspective, recognizing potential limitations on enforceability that are common in contractual agreements.
Furthermore, the manufacturer warrants that their execution of the agreement and their performance of all obligations under it will not breach any existing agreements, violate any laws or orders, or require consent from any third party, including governmental bodies. This comprehensive representation aims to assure the franchisee that the manufacturer's participation in the agreement is free from legal impediments and will not create conflicts with other obligations or regulatory requirements. The manufacturer also represents that it will maintain Worker's Compensation insurance, Commercial Comprehensive General Liability insurance, and Builder's Risk and/or casualty insurance during the construction of the Unit.