factual

Does 7 Brew require a Guaranty and Assumption of Obligations agreement as part of its franchise agreement exhibits?

7_Brew Franchise · 2025 FDD

Answer from 2025 FDD Document

as of the date set forth next to our signature below.

| BREW CULTURE FRANCHISE, LLC, a Wyoming limited liability company | FRANCHISEE | | | |---------------------------------------------------------------------|------------|--|--| | By: | [Name] | | | | Name: John Davidson | | | | | Title: Manager | By: Name: | | | | Date:, 20** | Title: | | | | **Effective Date | Date:, 20 | | | | | | | |

EXHIBIT A-1 TO THE BREW CULTURE FRANCHISE, LLC FRANCHISE AGREEMENT

GUARANTY AND ASSUMPTION OF OBLIGATIONS

Each of the undersigned consents and agrees that: (1) his or her direct and immediate liability under this Guaranty will be joint and several, both with Franchisee and among other guarantors; (2) he or she will render any payment or performance required under the Agreement upon demand if Franchisee fails or refuses punctually to do so; (3) this liability will not be contingent or conditioned upon Franchisor's pursuit of any remedies against Franchisee or another person; (4) this liability will not be diminished, relieved, or otherwise affected by any extension of time, credit, or other indulgence Franchisor may from time to time grant to Franchisee or to another person, including, without limitation, the acceptance of any partial payment or performance or the compromise or release of any claims (including, without limitation, any release of other guarantors), none of which will in any way modify or amend this Guaranty, which will continue and be irrevocable during the term of the Agreement (including, without limitation, any extensions of its term) and afterward for so long as any performance is or might be owed under the Agreement by Franchisee or any of its owners and for so long as Franchisor has any cause of action against Franchisee or any of its owners; (5) this Guaranty will continue in full force and effect for (and as to) any extension or modification of the Agreement and despite the transfer of any interest in the Agreement or Franchisee, and each of the undersigned waives notice of any and all renewals, extensions, modifications, amendments, or transfers; and (6) any Franchisee indebtedness to the undersigned, for whatever reason, whether currently existing or hereafter

arising, will at all times be inferior and subordinate to any indebtedness owed by Franchisee to Franchisor or its affiliates.

Source: Item 22 — CONTRACTS (FDD pages 82–83)

What This Means (2025 FDD)

Yes, according to the 2025 Franchise Disclosure Document, 7 Brew requires a Guaranty and Assumption of Obligations agreement as part of its franchise agreement exhibits. Exhibit A-1 to the 7 Brew Franchise Agreement is titled "GUARANTY AND ASSUMPTION OF OBLIGATIONS." Additionally, when a franchisee develops multiple 7 Brew stores under a development rider, the franchise agreement and related documents that the franchisee and their owners must sign for each store includes a Guaranty and Assumption of Obligations agreement.

The Guaranty and Assumption of Obligations agreement stipulates that the guarantor's liability is joint and several with the franchisee and other guarantors. The guarantor is obligated to fulfill any payment or performance required under the agreement if the franchisee fails to do so, upon demand from 7 Brew. This liability is not contingent on 7 Brew pursuing remedies against the franchisee or any other person. The guarantor's obligations remain in effect even if 7 Brew grants extensions of time or credit to the franchisee.

This agreement remains in full force for any extensions or modifications of the franchise agreement, despite any transfer of interest in the agreement or the franchisee. The guarantor waives notice of any renewals, extensions, modifications, amendments, or transfers. Furthermore, any franchisee indebtedness to the guarantor is subordinate to any indebtedness owed by the franchisee to 7 Brew or its affiliates. This ensures 7 Brew's financial interests are prioritized over the guarantor's in case of financial difficulties.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.