Does the spouse of a 7 Brew owner need to sign the Guaranty and Assumption of Obligations?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
The franchisor is Brew Culture Franchise, LLC ("we," "us," or "our"). "You" means the entity to which we grant franchises and development rights. Your owners must sign our "Guaranty and Assumption of Obligations" or "Owner's Undertaking of Non-Monetary Obligations" (depending on the ownership percentage). This means all or some of our Franchise Agreement's provisions (Exhibit A) also will apply to your owners.
The term "Immediate Family" includes the named individual, his or her spouse or domestic partner, and all children of the named individual or his or her spouse or domestic partner. You agree to obtain similar covenants from your officers, directors, and other supervisory personnel, to the extent permitted by applicable Law, to the extent their competitive activities would adversely affect your Store or the 7 BREW brand. We may pre-approve the forms of agreements you use solely to ensure that you adequately protect Confidential Information and the competitiveness of 7 BREW Stores. Under no circumstances will we control the forms or terms of employment agreements you use with Store employees or otherwise be responsible for your labor relations or employment practices.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 52–53)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, whether a spouse needs to sign the Guaranty and Assumption of Obligations depends on their ownership status and relationship to the franchisee. The FDD states that the franchisee's owners must sign either the "Guaranty and Assumption of Obligations" or the "Owner's Undertaking of Non-Monetary Obligations," depending on their ownership percentage.
Furthermore, the definition of "Immediate Family" includes the named individual, their spouse or domestic partner, and all children of the named individual or their spouse or domestic partner. This definition is relevant in the context of non-compete agreements, where 7 Brew requires similar covenants from officers, directors, and other supervisory personnel to protect confidential information and the competitiveness of 7 Brew stores.
While the FDD specifies that owners must sign the guaranty, it does not explicitly state that a spouse who is not an owner must sign it. However, given the inclusion of spouses in the definition of "Immediate Family" for non-compete purposes, it is possible that 7 Brew may require a spouse to sign the Guaranty and Assumption of Obligations in certain circumstances, particularly if the spouse is involved in the business or has access to confidential information. A prospective franchisee should clarify this requirement with 7 Brew during their due diligence.
In summary, while the FDD indicates that owners must sign the Guaranty and Assumption of Obligations, the necessity of a spouse's signature depends on their ownership status and potential involvement in the business. It is crucial for prospective franchisees to confirm this requirement with 7 Brew to ensure full compliance.