Does the release provided by the 7 Brew franchisee cover claims arising after the date of signature?
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 provided by the franchisee generally covers claims arising before the date of signature. Specifically, the franchisee releases 7 Brew from claims related to the performance of obligations under the Franchise Agreement, the offer and grant of the franchise, or the relationship between the parties, up to the date of the franchisee's signature.
However, the release does not extend to claims arising under the Washington Franchise Investment Protection Act. Furthermore, for franchisees based in California, there is a specific acknowledgement regarding Section 1542 of the California Civil Code, which states that a general release does not cover claims unknown at the time of execution that would have materially affected the settlement. Despite this, the California-based franchisee agrees to waive the protections of Section 1542, indicating an intent to release even unknown claims.
In practical terms, this means that a 7 Brew franchisee is giving up their right to sue 7 Brew for issues that occurred before they signed the agreement, with the exception of claims under Washington franchise law. Franchisees in other states, especially California, should carefully consider the implications of waiving rights to unknown claims, consulting with legal counsel to fully understand the scope of the release they are providing. This type of release is common in franchising, but the specific exclusions and waivers can vary, so it's important to review the document closely.