Does the text specify any geographic limits related to the agreement introduction for 7 Brew?
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. |
| 3. |
| COVENANT NOT TO COMPETE. Section 19.E of the Franchise Agreement is |
| amended by adding the following: |
| Covenants not to compete such as those mentioned above are generally considered |
| unenforceable in the State of North Dakota. However, you acknowledge and agree |
| that we intend to seek enforcement of these provisions to the extent allowed under |
| the law. |
| 4. |
| ARBITRATION. The third sentence of Section 21.F of the Franchise Agreement |
| is amended to read as follows: |
| All proceedings, including the hearing, will be conducted at a suitable location that |
| is within ten (10) miles of where we have our (or, in the case of a transfer by us, |
| the then-current franchisor has its) principal business address when the arbitration |
| demand is filed, provided, however, that to the extent required by the North Dakota |
| Franchise Investment Law (unless such a requirement is preempted by the Federal |
| Arbitration Act), arbitration proceedings will be held at a site to which we and you |
| agree. |
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to the 2025 FDD, the franchise agreement for 7 Brew includes a rider that addresses specific geographic considerations, particularly for franchisees operating in North Dakota. This rider is triggered if the franchisee is a resident of North Dakota or if any part of the franchise offer or sales activity occurred in North Dakota.
Specifically, the rider modifies certain sections of the standard franchise agreement to comply with North Dakota's franchise laws. These modifications include stipulations that any releases signed by the franchisee will not waive rights under the North Dakota Franchise Investment Law. Additionally, the rider acknowledges that covenants not to compete may be generally unenforceable in North Dakota but states 7 Brew's intent to seek enforcement to the extent allowed by law.
Furthermore, the arbitration clause is adjusted to ensure proceedings are held at a location agreed upon by both parties, potentially within North Dakota, to comply with the North Dakota Franchise Investment Law, unless preempted by the Federal Arbitration Act. This indicates that 7 Brew tailors certain aspects of its franchise agreement to align with specific state regulations, providing a level of localized compliance for franchisees in North Dakota.