Under what circumstances is the Rider to the 7 Brew Franchise Agreement signed?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
REOF**, the parties have executed and delivered this Rider to be effective as of the Effective Date of the Franchise Agreement.
BREW CULTURE FRANCHISE, LLC, a Wyoming limited liability company (IF CORPORATION, LIMITED LIABILITY COMPANY OR PARTNERSHIP): John Davidson [Name] Manager By: Name: Title: Date:
| (IF INDIVIDUALS): | |
|---|---|
| [Signature] | |
| [Print Name] | |
| [Signature] | |
| [Print Name] |
RIDER TO THE BREW CULTURE FRANCHISE, LLC FRANCHISE AGREEMENT FOR USE IN NORTH DAKOTA
| 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. |
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, there are two distinct types of Riders that may be attached to the standard Franchise Agreement: a Development Rights Rider and a state-specific Rider. The Development Rights Rider is signed when the franchisee desires the right to construct, develop, and operate additional 7 Brew stores within a specified territory beyond the initial store covered by the Franchise Agreement. This rider grants these development rights contingent upon the franchisee's compliance with its terms.
The state-specific Rider is used when the franchisee is a resident of North Dakota or Hawaii, or when any franchise offer or sales activity related to the Franchise Agreement occurred in either of those states. These riders modify certain terms of the standard Franchise Agreement to comply with state laws.
Specifically, the North Dakota rider includes clauses related to releases, covenants not to compete, and arbitration, ensuring compliance with North Dakota's Franchise Investment Law. The Hawaii rider acknowledges the deletion of specific paragraphs in Section 2 of the Franchise Agreement.