Under what circumstances is the Rider to the Franchise Agreement signed for a 7 Brew franchise?
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. 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 7 Brew's 2025 Franchise Disclosure Document, a rider to the franchise agreement is signed under specific circumstances, primarily related to development rights or state-specific legal considerations. A Development Rights Rider is used when a franchisee wants the right to construct, develop, and operate additional 7 Brew stores within a defined territory over a specific time. This rider is attached to the initial Franchise Agreement for the first store and outlines the terms for developing subsequent locations.
Additionally, a rider may be required if the franchisee is a resident of North Dakota or if any franchise offer or sales activity occurred in North Dakota. This rider modifies certain sections of the standard franchise agreement to comply with North Dakota franchise law, addressing issues such as releases, covenants not to compete, and arbitration. Similar state-specific riders are included for other states like Hawaii, addressing specific legal requirements within those jurisdictions.
The Development Rights Rider grants the franchisee the exclusive right to develop a certain number of 7 Brew stores within a defined territory, subject to a mandatory development schedule. This rider does not grant independent franchise rights but rather potential development rights contingent upon full compliance with its terms. The rider also specifies conditions under which it can be terminated, such as failure to meet development obligations or termination of the initial franchise agreement. These riders ensure that the franchise agreement complies with local laws and regulations or outlines specific development rights granted to the franchisee.