During what period is the 7 Brew Owner's Undertaking irrevocable?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
The undersigned consents and agrees that this liability will not be contingent or conditioned upon Franchisor's pursuit of any remedies against Franchisee or another person and will not be diminished, relieved, or otherwise affected by any extension of time, credit, or other indulgence Franchisor may from time to time grant to Franchisee or to another person, including, without limitation, the acceptance of any partial performance or the compromise or release of any claims, none of which will in any way modify or amend this Undertaking, which will continue and be irrevocable during the term of the Agreement (including, without limitation, any extensions of its term) and afterward for so long as any performance is or might be owed under the Agreement by Franchisee or its owners and for so long as Franchisor has any cause of action against Franchisee or any of its owners. 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 the 2025 7 Brew Franchise Disclosure Document, the Owner's Undertaking is irrevocable during the term of the Franchise Agreement, including any extensions. It remains in effect afterward as long as any performance is or might be owed by the franchisee or its owners under the agreement, and for as long as 7 Brew has any cause of action against the franchisee or any of its owners.
This means that the obligations and liabilities outlined in the Owner's Undertaking cannot be canceled or revoked during the franchise term. This commitment extends beyond the initial term if the franchisee still owes any performance or if 7 Brew has grounds to take legal action against them. The undertaking remains valid even if the agreement is extended, modified, or if there's a transfer of interest in the agreement or the franchise.
This clause ensures that 7 Brew maintains certain protections and recourse options throughout the relationship with the franchisee and potentially beyond. Prospective franchisees should carefully review the Owner's Undertaking to fully understand the scope and duration of their obligations and potential liabilities.