In which states does the 'No Waiver or Disclaimer of Reliance' provision apply to 7 Brew franchisees?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
The following provision applies only to 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, or Wisconsin:
No statement, questionnaire, or acknowledgement signed or agreed to by you in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by us, any franchise seller, or any other person acting on our behalf. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the 'No Waiver or Disclaimer of Reliance' provision applies specifically to franchisees and franchises subject to state franchise registration/disclosure laws in certain states. This provision ensures that franchisees in these states retain their rights under applicable state franchise laws, preventing them from waiving claims, including those related to fraud in the inducement, or disclaiming reliance on statements made by 7 Brew or its representatives. This clause takes precedence over any conflicting terms in other franchise-related documents.
For a prospective 7 Brew franchisee, this means that if their franchise is located in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin, they are afforded additional protection under state franchise laws. This protection prevents 7 Brew from enforcing waivers or disclaimers that might otherwise limit the franchisee's ability to pursue legal claims against the company.
This type of provision is particularly important in states with strong franchise laws, as it reinforces the franchisee's rights and ensures that they cannot inadvertently relinquish those rights through standard contract language. Franchisees in these states can take comfort in knowing that their ability to seek legal recourse for issues like misrepresentation or fraud is safeguarded by this specific clause in the franchise agreement.