Under the 7 Brew Franchise Agreement, can the guarantee be waived or limited?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
We and you may in writing unilaterally waive or reduce any contractual obligation or restriction upon the other, effective upon delivery of written notice to the other or another effective date stated in the waiver notice. However, no interpretation, change, termination, or waiver of any provision of this Agreement will bind us unless in writing, signed by one of our officers, and specifically identified as an amendment to this Agreement. No modification, waiver, termination, discharge, or cancellation of this Agreement affects the right of any party to this Agreement to enforce any claim or right under this Agreement, whether or not liquidated, which occurred before the date of such modification, waiver, termination, discharge, or cancellation. Any waiver granted is without prejudice to any other rights we or you have, is subject to continuing review, and may be revoked at any time and for any reason effective upon delivery of ten (10) days' prior written notice.
We and you will not waive or impair any right, power, or option this Agreement reserves (including our right to demand your strict compliance with every term, condition, and covenant or to declare any breach to be a default and to terminate this Agreement before the Term expires) because of any custom or practice varying from this Agreement's terms; our or your failure, refusal, or neglect to exercise any right under this Agreement or to insist upon the other's compliance with this Agreement, including your compliance with any Brand Standard; our waiver of or failure to exercise any right, power, or option, whether of the same, similar, or different nature, with other 7 BREW Stores; the existence of franchise agreements for other 7 BREW Stores containing provisions differing from those contained in this Agreement; or our acceptance of any payments from you after any breach of this Agreement. No special or restrictive legend or endorsement on any payment or similar item given to us will be a waiver, compromise, settlement, or accord and satisfaction. We may remove any legend or endorsement, which will have no effect.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 52–53)
What This Means (2025 FDD)
According to the 2025 7 Brew Franchise Disclosure Document, both 7 Brew and the franchisee can unilaterally waive or reduce any contractual obligation or restriction upon the other, provided it is done in writing. The waiver becomes effective upon delivery of written notice or on another effective date stated in the waiver notice. However, any interpretation, change, termination, or waiver of any provision must be in writing, signed by an officer of 7 Brew, and specifically identified as an amendment to the agreement to be binding on 7 Brew.
It's important to note that no modification, waiver, termination, discharge, or cancellation of the Franchise Agreement affects either party's right to enforce any claim or right under the agreement that occurred before the date of such changes. Any waiver granted is subject to continuing review and can be revoked at any time, for any reason, with ten days' prior written notice.
7 Brew also retains all rights, powers, and options reserved in the agreement, including the right to demand strict compliance with every term and condition. This means that 7 Brew's failure to enforce a right or insist on compliance does not waive that right. Similarly, accepting payments after a breach of the agreement does not constitute a waiver. 7 Brew may remove any special or restrictive legends or endorsements on payments, which will have no effect.