Does the 7 Brew release cover claims related to the offer and grant of the franchise?
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.
Source: Item 23 — RECEIPTS (FDD pages 83–279)
What This Means (2025 FDD)
According to the 2025 7 Brew Franchise Disclosure Document, the release covers claims related to the offer and grant of the franchise. The release includes discharging 7 Brew from any claims arising out of or related to the offer and grant of the 7 Brew store franchise. This means that by signing the release, the franchisee agrees to waive their right to sue 7 Brew for issues connected to how the franchise was offered or granted.
This release extends to various types of claims, including those alleging violations of deceptive or unfair trade practices laws, franchise laws, or other local, municipal, state, federal, or other laws, statutes, rules, or regulations. The franchisee acknowledges that they may discover new facts after signing the release but still agree to its terms. However, this release of claims does not apply to claims arising under the Washington Franchise Investment Protection Act.
For franchisees in California, the release includes a waiver of rights under Section 1542 of the California Civil Code, which generally protects against releasing claims that are unknown at the time of signing the release. By waiving this section, California franchisees are giving up their right to later claim they were unaware of certain issues when they signed the release. Franchisees in states other than California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin will sign a document confirming they had ample opportunity to investigate all statements and information made by 7 Brew.