What sections of the 7 Brew Franchise Agreement are modified by the Rider regarding releases?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Franchise Disclosure Document, the Rider modifies specific sections of the 7 Brew Franchise Agreement concerning releases, particularly for franchisees operating in North Dakota or those whose franchise activities occurred there.
The Rider explicitly adds language to the end of Sections 4.A, 16.A, 16.C(2)(i), 16.G, 17, and 19.F(3) of the Franchise Agreement. This additional language stipulates that any release executed by the franchisee will not apply if it's prohibited by applicable law, specifically referencing claims arising under the North Dakota Franchise Investment Law.
In practical terms, this means that while 7 Brew's standard franchise agreement includes release provisions, these provisions are limited in North Dakota to the extent they conflict with North Dakota's franchise laws. This ensures that franchisees in North Dakota retain their rights under the state's franchise investment law, regardless of any release they may have signed. This modification provides an added layer of protection for franchisees in North Dakota, ensuring compliance with state-specific regulations.