factual

Does 7 Brew use State-Specific Franchise Agreement Riders?

7_Brew Franchise · 2025 FDD

Answer from 2025 FDD Document

Companies, do hereby certify that the above and foregoing is a true and correct copy of the Power of Attorney executed by said Companies, which remains in full force and effect.

Dated this

M day of

Kevin E. Hughes, Assistant Secretary

To verify the authenticity of this Power of Attorney, please call us at 1-800-421-3880.

Please refer to the above-named Attorney(s)-in-Fact and the details of the bond to which this Power of Attorney is attached.

THE FOLLOWING PAGES IN THIS EXHIBIT ARE STATE-SPECIFIC RIDERS TO THE FRANCHISE AGREEMENT

RIDER TO THE BREW CULTURE FRANCHISE, LLC FRANCHISE AGREEMENT FOR USE IN HAWAII

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) any of the franchise offer or sales activity relating to the Franchise Agreement occurred in the State of Hawaii, or (b) you are a resident of Hawaii. 2. ACKNOWLEDGMENTS. Paragraphs (7) through (14) of Section 2 of the Franchise Agreement are hereby deleted. IN WITNESS WHEREOF, 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 MARYLAND

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 Maryland; or (b) the 7 BREW Store you will operate under the Franchise Agreement
will be located in Maryland.
2.
ACKNOWLEDGMENTS. Paragraphs (7) through (14) of Section 2 of the
Franchise Agreement are hereby deleted.
The following language is added to the end of Section 2 of the Franchise Agreement:
All representations requiring you to assent to a release, estoppel, or waiver of
liability are not intended to nor shall they act as a release, estoppel, or waiver of
any liability incurred under the Maryland Franchise Registration and Disclosure
Law.
  1. FEES. The following language is added at the end of Section 5.A of the Franchise Agreement:

Based upon the franchisor's financial condition, the Maryland Securities Commissioner has required a financial assurance. Therefore, we have secured a surety bond in the amount of $850,000 from Travelers Casualty and Surety Company of America. A copy of the bond is on file at the Maryland Office of the Attorney General, Securities Division, 200 St. Paul Place, Baltimore, Maryland 21202.

  1. 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:

Pursuant to COMAR 02.02.08.16L, such general release required as a condition of renewal, sale, and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.

  1. GOVERNING LAW The following language is added to the end of Section 21.G of the Franchise Agreement:

However, to the extent required by applicable law, Maryland law will apply to claims arising under the Maryland Franchise Registration and Disclosure Law.

  1. CONSENT TO JURISDICTION. The following language is added at the end of Section 21.H of the Franchise Agreement:

Notwithstanding the foregoing, and subject to your arbitration obligations, you may bring an action in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.

  1. LIMITATION OF CLAIMS. The following sentence is added to the end of Section 21.L of the Franchise Agreement:

, except that any and all claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three (3) years after the grant of the Franchise.

IN WITNESS WHEREOF, 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 MINNESOTA

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) the 7 BREW
Store you will operate under the Franchise Agreement will be located in Minnesota, or (b) any of
the franchise offer or sales activity relating to the Franchise Agreement occurred in Minnesota.
2.
RELEASES.

Source: Item 22 — CONTRACTS (FDD pages 82–83)

What This Means (2025 FDD)

Yes, according to the 2025 Franchise Disclosure Document, 7 Brew utilizes state-specific riders to their franchise agreement. The FDD includes specific riders for franchisees in Hawaii and North Dakota.

The Hawaii rider modifies the standard franchise agreement by deleting paragraphs (7) through (14) of Section 2. This indicates that certain acknowledgements or provisions within those paragraphs are not applicable or are altered for Hawaii franchisees, likely due to specific state laws or regulations.

The North Dakota rider includes several modifications to the standard agreement. It adds language to Sections 4.A, 16.A, 16.C(2)(i), 16.G, 17, and 19.F(3) specifying that any releases executed will not waive claims under the North Dakota Franchise Investment Law. It also amends Section 19.E regarding covenants not to compete, acknowledging that such covenants are generally unenforceable in North Dakota but stating 7 Brew's intent to seek enforcement to the extent allowed by law. Additionally, the arbitration clause in Section 21.F is modified to ensure proceedings are held at a location compliant with the North Dakota Franchise Investment Law, unless preempted by the Federal Arbitration Act.

Furthermore, 7 Brew's FDD states that for franchisees subject to 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 can waive claims under state franchise law or disclaim reliance on statements made by 7 Brew. This provision supersedes any other conflicting term in any document related to the franchise agreement, offering additional protection to franchisees in these states.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.