factual

Does the 7 Brew Owner's Undertaking continue in effect despite the transfer of any interest in the Agreement or Franchisee?

7_Brew Franchise · 2025 FDD

Answer from 2025 FDD Document

This Undertaking will continue in full force and effect for (and as to) any extension or modification of the Agreement and despite the transfer of any interest in the Agreement or Franchisee, and the undersigned waives notice of any and all renewals, extensions, modifications, amendments, or transfers.

Source: Item 22 — CONTRACTS (FDD pages 82–83)

What This Means (2025 FDD)

According to 7 Brew's 2025 Franchise Disclosure Document, the Owner's Undertaking of Non-Monetary Obligations remains in full effect even if there is a transfer of interest in the Franchise Agreement or the franchisee. This means that the obligations and liabilities of the undersigned party under the Owner's Undertaking will persist despite any changes in ownership or transfer of the agreement.

Specifically, the document states that the Undertaking continues and remains irrevocable during the term of the Agreement, including any extensions, and afterward, as long as any performance is or might be owed under the Agreement by the franchisee or its owners, and for as long as 7 Brew has any cause of action against the franchisee or any of its owners. The undersigned also waives notice of any renewals, extensions, modifications, amendments, or transfers.

This clause ensures that 7 Brew retains its rights and protections regardless of changes in the franchisee's ownership or structure. The Owner's Undertaking is designed to provide ongoing assurance to 7 Brew that the obligations under the franchise agreement will be met, even if the original franchisee transfers their interest to another party. This is a common practice in franchising to maintain stability and accountability within the franchise system.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.