What is the purpose of including a statement about residency in the 7 Brew receipts confirmation?

According to the 2025 FDD, 7 Brew includes a statement about residency in its receipts confirmation to ensure that the Franchisee Representations document is not used if the franchise is to be operated in, or the franchisee is a resident of, certain states. These states are California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin.

This residency statement serves as a disclaimer, indicating that the standard Franchisee Representations document is not applicable in these specific states. This is likely due to variations in state franchise laws that require different or additional disclosures, representations, or legal considerations. By excluding franchisees from these states from using the standard document, 7 Brew aims to comply with the specific legal requirements of each state and avoid potential legal issues that could arise from using a non-compliant document.

For a prospective 7 Brew franchisee, this means that if they reside in or plan to operate a franchise in one of the listed states, they will not be subject to the standard Franchisee Representations. Instead, they may receive a state-specific addendum or a different version of the document tailored to comply with local regulations. It is important for franchisees to carefully review all documents provided by 7 Brew and to seek legal counsel to ensure they fully understand their rights and obligations under the franchise agreement, particularly in states with specific franchise laws.