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Under what circumstances will Arkansas legislation regulating franchises apply to the 7 Brew franchise agreement?

7_Brew Franchise · 2025 FDD

Answer from 2025 FDD Document

will be governed by the Laws of the State of Arkansas, without regard to its conflict of Laws rules. However, the provisions of any Arkansas legislation regulating the offer or sale of franchises, business opportunities, or similar interests, or governing the relationship between a franchisor and a franchisee or any similar relationship, will not apply to the matters in clauses (1) through (4) above under any circumstances unless their jurisdictional requirements and definitional elements are met independently without reference to this Section 21.G, and no exemption to their application exists.

Source: Item 22 — CONTRACTS (FDD pages 82–83)

What This Means (2025 FDD)

According to 7 Brew's 2025 Franchise Disclosure Document, the franchise agreement is generally governed by the laws of Arkansas. However, there are specific limitations regarding the applicability of Arkansas legislation related to franchises, business opportunities, or similar interests, and the relationship between 7 Brew and its franchisees.

Specifically, the provisions of any Arkansas legislation regulating the offer or sale of franchises, business opportunities, or similar interests, or governing the relationship between a franchisor and a franchisee or any similar relationship, will not apply to certain matters unless their jurisdictional requirements and definitional elements are met independently. This means that the applicability of these Arkansas laws is contingent upon meeting specific criteria without relying on the general governing law provision in the franchise agreement.

In simpler terms, for Arkansas franchise-related laws to apply, the situation must independently meet the requirements and definitions outlined in those specific laws, without depending on the fact that the franchise agreement is generally under Arkansas law. Additionally, no exemption to their application can exist. This ensures that specific franchise regulations in Arkansas only apply when the situation clearly falls under the scope and intent of those regulations, preventing unintended or broad applications based solely on the agreement's governing law.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.