Under what circumstances is the Rider to the 7 Brew Franchise Agreement required for Rhode Island?
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, a rider to the franchise agreement is required for franchisees and franchises subject to state franchise registration/disclosure laws in Rhode Island. Specifically, this applies to provisions concerning waivers or disclaimers of reliance. This means that no statement, questionnaire, or acknowledgment signed by the franchisee can waive claims under state franchise law, including fraud, or disclaim reliance on statements made by 7 Brew or its representatives. This overrides any conflicting terms in other franchise documents.
This requirement ensures that franchisees in Rhode Island retain their rights and protections under state franchise laws, preventing them from inadvertently waiving legal claims or being bound by disclaimers of reliance. This is particularly important in states with franchise-specific regulations, as it safeguards franchisees from potentially overreaching provisions in the standard franchise agreement.
For a prospective 7 Brew franchisee in Rhode Island, this means that certain standard clauses in the franchise agreement that might appear to limit their rights or ability to bring claims are superseded by the state-specific addendum. They should carefully review the franchise agreement and any related documents with legal counsel to understand the implications of this rider and ensure their rights are fully protected under Rhode Island law.