Does 7 Brew 'approve' sites, and if not, what is the distinction made in the FDD?
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
Source: Item 12 — TERRITORY (FDD pages 45–49)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, 7 Brew does not "approve" sites but rather "accepts" them. This distinction is important for prospective franchisees because it clarifies the extent of 7 Brew's involvement and responsibility in site selection. The FDD states that franchisees are responsible for finding and securing a site, after which 7 Brew must provide written acceptance.
The key difference between "accepting" and "approving" a site, according to 7 Brew, lies in the level of subjective determination involved. When 7 Brew "accepts" a site, it means the company believes the site is consistent with locations that have been favorable or successful for 7 Brew stores in the past. However, "acceptance" does not mean 7 Brew has subjectively determined that the particular site is a good one. This indicates that 7 Brew's assessment is based on general criteria and past performance rather than a guarantee of success for the specific location.
This distinction carries implications for franchisees. While 7 Brew's acceptance is required, the ultimate responsibility for the site's suitability and performance rests on the franchisee. Franchisees should conduct their own thorough market research and due diligence to ensure the chosen location meets their business needs and financial goals. Relying solely on 7 Brew's acceptance without independent assessment could pose a risk. Furthermore, if a franchisee wishes to relocate their 7 Brew store, they must find a new site acceptable to 7 Brew, pay a $5,000 relocation fee, and reimburse any costs 7 Brew incurs during the relocation process.