What is the maximum distance from the franchisor's location that arbitration proceedings for a 7 Brew franchise will be conducted?

According to 7 Brew's 2025 Franchise Disclosure Document, arbitration proceedings will generally occur within a limited radius of the franchisor's principal business address. Specifically, the proceedings, including any hearings, will be conducted at a location within ten miles of Brew Culture Franchise, LLC's principal business address. This address is defined as where the franchisor has its principal business address when the arbitration demand is filed, or where the then-current franchisor has its principal business address in the case of a transfer by 7 Brew.

However, there is an exception for franchisees operating in North Dakota. To the extent required by the North Dakota Franchise Investment Law, arbitration proceedings for North Dakota franchisees will be held at a site mutually agreed upon by both 7 Brew and the franchisee. This condition applies unless the North Dakota requirement is preempted by the Federal Arbitration Act.

This arbitration clause is important for prospective franchisees to consider, as it dictates where any legal disputes with 7 Brew would be resolved. The ten-mile radius provides a relatively local venue for most franchisees, potentially reducing travel costs and logistical burdens. However, the exception for North Dakota franchisees introduces a degree of uncertainty, as the arbitration site would depend on mutual agreement or legal preemption.