Under what circumstances is the 7 Brew Rhode Island rider being signed?
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)
The 2025 Franchise Disclosure Document (FDD) for 7 Brew indicates that a state-specific addendum, or rider, is required for franchisees and franchises subject to state franchise registration/disclosure laws in certain states. Among these states is Rhode Island.
According to Exhibit G, titled "State-Specific Addenda and Franchise Agreement Riders," a rider is necessary to ensure that no statement, questionnaire, or acknowledgment signed by the franchisee waives any claims under applicable state franchise law, including fraud in the inducement. It also ensures that the franchisee does not disclaim reliance on any statement made by 7 Brew, any franchise seller, or any other person acting on 7 Brew's behalf.
This provision in the 7 Brew franchise agreement supersedes any other conflicting terms in any document executed in connection with the franchise. This measure appears to be in place to protect franchisees in states with specific franchise laws, ensuring they retain their rights and protections under those laws.