What is the purpose of the 'Grant of Franchisor Consent and Franchisee Release' in the 7 Brew FDD?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
rities Department of Financial Institutions 4822 Madison Yards Way, North Tower Madison, Wisconsin 53705 (608) 266-2139
(state administrator)
Division of Securities Department of Financial Institutions 4822 Madison Yards Way, North Tower Madison, Wisconsin 53705 (608) 266-9555
EXHIBIT H
SAMPLE GENERAL RELEASE
BREW CULTURE FRANCHISE, LLC
GRANT OF FRANCHISOR CONSENT AND FRANCHISEE RELEASE
| Traditional 7 BREW Store Number | Traditional 7 BREW Store to be Open and Operating in Territory by (Deadline) | |---|---| | | | | | | | | | | | | | | | | | | Consistent with the previous introduction, you, on behalf of yourself and your successors, heirs, executors, administrators, personal representatives, agents, assigns, partners, owners, directors, officers, principals, employees, and affiliated entities (collectively, the "Releasing Parties"), hereby forever release and discharge us and our past, present, and future parent companies, subsidiaries, affiliates, investors, investment funds, and other related entities, and each of our and their respective past, present, and future officers, directors, owners, principals, employees, agents, executors, administrators, representatives, successors, and assigns (collectively, the "7 BREW Parties") from any and all claims, damages, demands, debts, causes of action, suits, duties, liabilities, costs, and expenses of any nature and kind, whether presently known or unknown, vested or contingent, suspected or unsuspected (all such matters, collectively, "Claims"), that you and any other Releasing Party now have, ever had, or, but for this Consent, hereafter would or could have against any 7 BREW Party (1) arising out of or related in any way to the 7 BREW Parties' performance of or alleged failure to perform their obligations under the Franchise Agreement before the date of your signature below, (2) arising out of or related in any way to our offer and grant to you of your 7 BREW Store franchise, or (3) otherwise arising out of or related in any way to your and the other Releasing Parties' relationship, from the beginning of time to the date of your signature below, with any of the 7 BREW Parties.
The released Claims include, but are not limited to, any Claim alleging violation of any deceptive or unfair trade practices laws, franchise laws, or other local, municipal, state, federal, or other laws, statutes, rules, or regulations. You and the other Releasing Parties acknowledge that you and they may after the date of the signatures below discover facts different from, or in addition to, those facts currently known to you and them, or which you and they now believe to be true, with respect to the Claims released by this document. You and the other Releasing Parties nevertheless agree that the release set forth in this document has been negotiated and agreed on despite such acknowledgement and despite any federal or state statute or common law principle which may provide that a general release does not extend to claims which are not known to exist at the time of execution.
You, on behalf of yourself and the other Releasing Parties, further covenant not to sue any 7 BREW Party on any Claim released by this document and represent that you have not assigned any Claim released by this document to any individual or entity that is not bound by this document.
We also are entitled to a release and covenant not to sue from your owners. By his, her, or their separate signatures below, your owners likewise grant to us the release and covenant not to sue provided above.
This Release of Claims does not apply to claims arising under the Washington Franchise Investment Protection Act, chapter 19.100 RCW, or the rules adopted thereunder in accordance with RCW 19.100.220(2).
[The following is special language for CA-based franchisees—remove for all other states]
Each party granting a release acknowledges a familiarity with Section 1542 of the Civil Code of the State of California, which provides as follows:
"A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party."
**Each party granting a release and its authorized signatories hereto recognize that he, she, or it may have some claim, demand, or cause of action against the released parties of which he, she, or it is unaware and unsuspecting, and which he, she, or it is giving up by signing this Addendum.
Source: Item 23 — RECEIPTS (FDD pages 83–279)
What This Means (2025 FDD)
According to the 2025 7 Brew Franchise Disclosure Document, the 'Grant of Franchisor Consent and Franchisee Release' is a document where the franchisee releases 7 Brew from any claims or liabilities related to the franchise agreement. This release covers a broad range of potential claims, including those arising from the performance (or alleged failure to perform) obligations under the franchise agreement, the offer and grant of the franchise, or the franchisee's relationship with 7 Brew. The release extends from the beginning of time until the date the franchisee signs the document.
The document explicitly states that the released claims include allegations of violations of deceptive trade practices, franchise laws, or other local, state, or federal laws. It also acknowledges that the franchisee may later discover new facts related to the released claims but agrees to the release regardless. Furthermore, the franchisee agrees not to sue 7 Brew on any claim released by the document and confirms that they have not assigned any released claim to another party.
However, the release does not apply to claims arising under the Washington Franchise Investment Protection Act. For franchisees based in California, the document includes a waiver of Section 1542 of the California Civil Code, which generally protects against releasing claims that are unknown at the time of signing the release. By signing the release, California franchisees are giving up their right to later claim they were unaware of certain issues that would have affected their decision to settle with 7 Brew.
In essence, this release is a comprehensive legal protection for 7 Brew, limiting their liability from potential franchisee claims. Prospective franchisees should carefully review this document with their legal counsel to fully understand the scope of the release and its implications before signing the franchise agreement. Franchisees need to be aware of the rights they are waiving and the potential impact on their ability to pursue legal action against 7 Brew in the future.