Does 7 Brew require franchisees to acknowledge that the terms and covenants in the agreement are reasonably necessary to maintain product quality and protect the goodwill of the marks?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
rate a Traditional 7 BREW Store, and we are willing to grant you the franchise on the terms and conditions contained in this Agreement.
2. Acknowledgments
You acknowledge that:
- (1) Attracting customers for your 7 BREW Store will require you to make consistent marketing efforts in your community, including through media and on-line advertising and social-media marketing and networking.
- (2) Retaining customers for your 7 BREW Store will require you to provide highquality products and services and adhere strictly to the Franchise System and Brand Standards (defined in Section 6.F below and categorized in Section 7.C below).
- (3) You are committed to maintaining Brand Standards.
- (4) Our officers, directors, employees, consultants, lawyers, and agents act only in a representative, and not in an individual, capacity when dealing with you, and their business dealings with you as a result of this Agreement therefore are considered to be only between you and us.
- (5) All application and qualification materials you gave us about you and your owners to acquire this franchise were accurate and complete.
- (6) We make no commitment about the extent to which and where we and our affiliates will continue developing and expanding the 7 BREW Store network.
The acknowledgments in clauses (7) through (14) below apply to all franchisees and franchises except not to any franchisees and franchises that are subject to the state franchise registration/disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin.
- (7) Other than disclosures in our franchise disclosure document, you have not received from us or our affiliates any representations or guarantees, express or implied, of a 7 BREW Store's potential volume, sales, income, or profits.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, franchisees, with some exceptions, must acknowledge the necessity of the franchise agreement's terms and covenants. Specifically, franchisees, except those in states with franchise registration/disclosure laws, must acknowledge that the agreement's terms are reasonably necessary to maintain product quality and service standards, and to protect the goodwill of 7 Brew's marks. This acknowledgment is part of a broader set of acknowledgments that franchisees make regarding their understanding of the franchise opportunity.
This requirement signifies the importance 7 Brew places on uniformity and brand consistency across all franchise locations. By acknowledging this, franchisees recognize the legal basis for 7 Brew to enforce its standards and protect its brand reputation. It also highlights the mutual understanding that the franchisee's actions directly impact the overall brand image and success of the 7 Brew system.
However, this acknowledgment does not apply to franchisees and franchises subject to state franchise registration/disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. Prospective franchisees in those states may not be held to the same acknowledgment, which could affect the enforceability of certain terms in those jurisdictions. This difference suggests that 7 Brew tailors its franchise agreement to comply with varying state regulations, which is a common practice in franchising to ensure legal compliance across different regions.