Does 7 Brew approve or accept sites for its stores?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
ITORY**
Franchise Agreement
You will operate each 7 BREW Store at a specific location that we first must accept. You must find, obtain our written acceptance of, and secure a site for each Store following the procedures specified in the DRR (described in Item 11). (We do not "approve" sites; we "accept" them under the circumstances described in Item 11. When we "accept" a site, that means only that we believe the site is not inconsistent with sites that we regard as favorable, or that otherwise have been successful sites in the past, for 7 BREW Stores. "Accept" is different from "approve," which in this context might be interpreted to mean that we subjectively determined that the particular site is a good site.) You may operate the Store only at that site. You may not relocate the Store without our prior written consent, which we have the right to grant or deny as we deem best. Whether or not we will allow relocation depends on circumstances at the time and what is in the Store's and our system's best interests. Factors include, for example, the new site's market area, its proximity to other Stores in our system, whether you are complying with your Franchise Agreement, and how long it will take you to open at the new site.
Conditions for relocation approval are (1) the new site is acceptable to us, (2) you pay us a $5,000 relocation fee, (3) you reimburse any costs we incur during the relocation process, (4) you confirm that your original Franchise Agreement remains in effect and governs the Store's operation at the new site with no change in the franchise term, (5) you sign a general release, in a form satisfactory to us, of any and all claims against us and our owners, affiliates, officers, directors, employees, and agents, (6) you continue operating the Store at its original site until we authorize its closure, and (7) you de-brand and de-identify the Store's former premises within the timeframe we specify and at your own expense so it no longer is associated in any manner (in our opinion) with our system and the Marks.
During the franchise term, we and our affiliates will not own or operate, or allow another franchisee or licensee to own or operate, another Traditional 7 BREW Store that has its physical location within an "Area of Protection" described in an exhibit to the Franchise Agreement. Your Area of Protection will be a radius from the walls of the Store's building equal to either 1.5 or 2 miles depending on the size of the Metropolitan Statistical Area in which your Store is located. However, there are no restrictions whatsoever on our and our affiliates' activities with respect to Non-Traditional 7 BREW Stores physically located within the Area of Protection, including our and our affiliates' right to own and operate and to grant others the right to own and operate such Non-Traditional 7 BREW Stores within the Area of Protection. Because of our and our affiliates' rights with respect to Non-Traditional 7 BREW Stores physically located within the Area of Protection, you will not receive an exclusive territory.
Source: Item 12 — TERRITORY (FDD pages 45–49)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the franchisor must first accept the specific location for each 7 Brew store. The franchisee is responsible for finding and securing a site, and then obtaining written acceptance from 7 Brew, following the procedures outlined in the Development Rights Rider (DRR). 7 Brew emphasizes that it does not "approve" sites but rather "accepts" them based on whether they align with characteristics of favorable or successful past locations. This acceptance indicates that 7 Brew believes the site is consistent with successful sites, but it is not a subjective determination that the site is guaranteed to be a good one.
For franchisees with a Development Rights Rider, 7 Brew must accept each new site proposed for a new 7 Brew store, and the franchisor's then-current standards for sites will apply. If 7 Brew delays accepting a proposed site that meets the criteria, and fails to resolve the delay within 10 days after written notice from the franchisee, the franchisee can adjust the development schedule by adding the number of days of delay to the opening deadline for each subsequent 7 Brew store.
Relocation of a 7 Brew store requires prior written consent from the franchisor, which they may grant or deny. Relocation approval conditions include the new site being acceptable to 7 Brew, payment of a $5,000 relocation fee, reimbursement of any costs incurred by 7 Brew during the relocation, confirmation that the original Franchise Agreement remains in effect, signing a general release of claims, continuing operation at the original site until authorized to close, and de-branding the former premises so it is no longer associated with the 7 Brew system.