Does the owner represent that signing the agreement for a 7 Brew unit will not breach any other agreements they are a party to?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
(b) Owner hereby represents to Manufacturer that:
(i) Owner has the full legal right, power, and authority to enter into this Agreement.
(ii) This Agreement is the legal, valid, and binding obligation of Owner, enforceable against Owner 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) The signing and delivery of this Agreement by Owner and the performance by Owner of all of Owner's obligations under this Agreement will not breach any agreement to which Owner is a party, or give any person the right to accelerate any obligation of Owner; violate any law, judgment, or order to which Owner is subject; or require the consent, authorization, or approval of any person, including but not limited to any governmental body.
(iv) Owner acknowledges that it has entered into agreements with an affiliate of Manufacturer named Brew Culture Franchise, LLC, a Wyoming limited liability company ("Brew Culture Franchise"), relating to the operation of a "7 Brew Drive-Thru Coffee" store.
The Unit purchased hereunder shall be used in connection with the operation of such "7 Brew Drive-Thru Coffee" store and in strict compliance with such agreements by and between Owner and Brew Culture Franchise.
Source: Item 23 — RECEIPTS (FDD pages 83–279)
What This Means (2025 FDD)
According to the 2025 FDD, the owner, when signing the agreement with the manufacturer for a 7 Brew unit, makes several representations. One of these is a guarantee that entering into the agreement will not violate any other agreements they are currently bound by. This is a standard clause in franchising to ensure that the franchisee is free to enter into the agreement without legal conflicts.
Specifically, the owner confirms that signing the agreement and fulfilling their obligations will not breach any existing agreements, accelerate any obligations, violate any laws or orders, or require consent from any person or governmental body. This representation protects the manufacturer by ensuring the owner has the legal capacity to enter the agreement and that there are no hidden impediments that could affect the agreement's validity.
Furthermore, the owner acknowledges their existing agreements with Brew Culture Franchise, an affiliate of the manufacturer, related to the operation of a 7 Brew Drive-Thru Coffee store. The owner confirms that the unit purchased will be used in compliance with these agreements. This acknowledgment highlights the interconnectedness of the agreements and the owner's responsibility to meet all obligations under both agreements. This clause ensures that the manufacturer is not exposed to legal issues arising from the owner's other business relationships related to the 7 Brew franchise.