For 7 Brew, what agreements must the franchisee (and Approved Affiliates) be in substantial compliance with to have the franchise agreement terms modified?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
ional 7 BREW Store under a separate franchise agreement with us. The franchise agreement (and related documents, including Guaranty and Assumption of Obligations) that you and your owners (or your Approved Affiliate and its owners) must sign for each Traditional 7 BREW Store constructed and developed pursuant to this Rider will be our then-current form of franchise agreement (and related documents, including Guaranty and Assumption of Obligations),
any or all terms of which may differ substantially and materially from any or all terms contained in the First Franchise Agreement, provided, however, that:
- (i) the initial franchise fee will be Twenty-Five Thousand Dollars ($25,000) for the second and each subsequent Traditional 7 BREW Store to be developed pursuant to this Rider; and
- (ii) the terms specified in our then-current form of franchise agreement will be modified for each new Traditional 7 BREW Store to include the same terms that you negotiated with us and that appear in any amendment to the First Franchise Agreement, unless you (and your Approved Affiliates) are not then in substantial compliance (subject to any applicable opportunity to cure) with this Rider, the First Franchise Agreement, and all other franchise agreements then in effect between us and you (and your Approved Affiliates) for 7 BREW Stores. If you (and your Approved Affiliates) are not then in substantial compliance with this Rider, the First Franchise Agreement, and all other franchise ag
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, when a franchisee (and their Approved Affiliates) develops additional 7 Brew stores, the terms of the then-current franchise agreement will be modified to include the same terms that the franchisee negotiated with 7 Brew in the initial franchise agreement. However, this is conditional.
Specifically, to have the terms of the new franchise agreement modified to reflect the terms of the initial agreement, the franchisee (and their Approved Affiliates) must be in substantial compliance with the Rider, the First Franchise Agreement, and all other franchise agreements then in effect between 7 Brew and the franchisee (and their Approved Affiliates) for 7 Brew stores.
If the franchisee (and their Approved Affiliates) are not in substantial compliance with these agreements and fail to correct the issues within the given opportunity to cure, the terms of the new franchise agreement will not be modified to include the negotiated terms from the first agreement. In this case, the terms of the franchise agreement that 7 Brew requires the franchisee to sign may differ significantly from the terms of the First Franchise Agreement.