According to 7 Brew, what constitutes a 'controlling ownership interest'?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
levy, attachment, or execution by your creditors or any financial institution. Any security interest that may be created in this Agreement by virtue of Section 9-408 of the Uniform Commercial Code is limited as described in Section 9-408(d) of the Uniform Commercial Code.
C. Conditions for Approval of Transfer
If you and your owners are in full compliance with this Agreement, then, subject to this Section 16's other provisions:
- (1) We will approve the transfer of a non-controlling ownership interest in you if the proposed transferee and its owners are of good moral character, have no ownership interest in and do not perform services for (and have no affiliates with an ownership interest in or performing services for) a Competitive Business, otherwise meet our then-applicable standards f
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
I am unable to provide information on what constitutes a 'controlling ownership interest' according to the 7 Brew's 2025 Franchise Disclosure Document. While the term is mentioned in the document, its specific definition is not included in the provided excerpts. The document refers to Section 21.M for the definition of the term "controlling ownership interest". A prospective franchisee should review Section 21.M of the FDD or ask the franchisor for clarification on how 7 Brew defines this term, as it is relevant to transfer conditions and other aspects of the franchise agreement.