What does the 7 Brew manufacturer represent regarding the validity of 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
Source: Item 23 — RECEIPTS (FDD pages 83–279)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the manufacturer makes several representations to the owner (franchisee) regarding the agreement's validity. Specifically, the manufacturer represents that it possesses the full legal right, power, and authority to enter into the agreement. This means the manufacturer is affirming it has the legal capacity and authorization to execute the agreement.
Additionally, the manufacturer represents that the agreement constitutes a legal, valid, and binding obligation, enforceable against the manufacturer according to its terms. This indicates the manufacturer believes the agreement is legally sound and will uphold its obligations, although enforceability may be limited by standard legal principles such as bankruptcy or equity.
Furthermore, the manufacturer assures that signing and delivering the agreement, along with fulfilling its obligations, will not breach any existing agreements, violate any laws or orders, or require consent from any person or governmental body. This provides assurance to the franchisee that the manufacturer's entry into the agreement is free from conflicts and legal impediments. These representations are intended to give the franchisee confidence in the legal standing and enforceability of the agreement with the manufacturer.