What actions constitute abandonment of a 7 Brew store, leading to potential termination?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
, we and our affiliates have the right, without any restrictions whatsoever, to (a) construct, develop, and operate, and to grant others the right to construct, develop, and operate, Traditional 7 BREW Stores physically located in the Territory (except within the Area of Protection surrounding each of your Traditional 7 BREW Stores) and (b) continue to engage, and to grant others the right to engage, in any other activities we (and our affiliates) desire within the Territory.
YOU ACKNOWLEDGE AND AGREE THAT TIME IS OF THE ESSENCE UNDER THIS RIDER, AND YOUR RIGHTS UNDER THIS RIDER ARE SUBJECT TO TERMINATION, AS PROVIDED IN THIS RIDER, IF YOU DO NOT COMPLY STRICTLY WITH THE DEVELOPMENT OBLIGATIONS PROVIDED IN THE SCHEDULE AND FAIL TO CURE SUCH NON-COMPLIANCE WITHIN NINETY (90) DAYS AFTER RECEIVING WRITTEN NOTICE FROM US. WE MAY ENFORCE THIS RIDER STRICTLY.
3. Development Obligations.
- (a) Approved Affiliates. To maintain your rights under this Rider, you (and/or Approved Affiliates) must by the deadlines specified in the Schedule construct, develop, and have open and operating within the Territory the agreed-upon minimum number of Traditional 7 BREW Stores.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the franchise agreement with 7 Brew outlines specific development obligations that, if not met, can lead to the termination of the Development Rights Rider. The rider outlines a schedule that franchisees must adhere to in constructing and developing 7 Brew stores within a defined territory. Failure to meet these development obligations and a failure to cure the non-compliance within ninety (90) days after receiving written notice from 7 Brew can result in the termination of the rider.
Termination of the Development Rights Rider means the franchisee loses the rights to construct and develop 7 Brew stores within the territory. 7 Brew has the right to terminate the rider if the franchisee fails to satisfy any development obligation under the schedule and does not cure such failure within the specified 90-day period after receiving written notice. Additionally, if a franchisee fails to meet any other obligation under the rider that they have no right to cure, 7 Brew can terminate the agreement.
It's important to note that upon termination due to failure to meet development obligations, the development fee is non-refundable, but 7 Brew will not seek further damages solely due to the failure to comply with the schedule. This highlights the importance of carefully reviewing and understanding the development obligations outlined in the Development Rights Rider and ensuring the franchisee has the resources and capabilities to meet those obligations within the specified timeframes.