What sections of the 7 Brew Franchise Agreement are modified by the addition of language regarding releases?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS RIDER is made and entered into by and between BREW CULTURE |
|---|
| FRANCHISE, LLC, a Wyoming limited liability company whose principal business address is |
| 2710 S. 48th Street, Springdale, Arkansas 72762 ("we," "us," or "our"), and, a |
| ("you" or "your"). |
| 1. |
| BACKGROUND. We and you are parties to that certain Franchise Agreement |
| dated, 20 (the "Franchise Agreement"). This Rider is annexed |
| to and forms part of the Franchise Agreement. This Rider is being signed because (a) you are a |
| resident of North Dakota, and the 7 BREW Store you will operate under the Franchise Agreement |
| will be located in North Dakota, or (b) any of the franchise offer or sales activity relating to the |
| Franchise Agreement occurred in North Dakota. |
| 2. |
| RELEASES. The following language is added at the end of Sections 4.A, 16.A, |
| 16.C(2)(i), 16.G, 17, and 19.F(3) of the Franchise Agreement: |
| Any release executed will not apply to the extent otherwise prohibited by applicable |
| law with respect to claims arising under the North Dakota Franchise Investment |
| Law. |
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to the 2025 FDD, a rider to the 7 Brew Franchise Agreement modifies specific sections related to releases for franchisees in North Dakota. The language is added at the end of Sections 4.A, 16.A, 16.C(2)(i), 16.G, 17, and 19.F(3) of the Franchise Agreement. This modification ensures that any release executed by the franchisee does not waive rights to the extent prohibited by applicable law, specifically concerning claims arising under the North Dakota Franchise Investment Law.
This means that while 7 Brew may require franchisees to sign releases, these releases will not be enforceable if they conflict with the protections provided by North Dakota's franchise laws. This is a significant protection for franchisees, as it prevents them from unknowingly waiving their legal rights under state franchise law. It is important to note that this modification is specific to North Dakota, reflecting the state's regulatory environment for franchises.
For prospective 7 Brew franchisees in North Dakota, this rider offers an added layer of security. It ensures that they retain their rights under the North Dakota Franchise Investment Law, even when signing releases related to the franchise agreement. This could be particularly relevant in situations involving renewal, sale, or transfer of the franchise. Franchisees should carefully review these sections of the agreement and understand their rights under North Dakota law.