What is the area of protection granted to a 7 Brew franchisee for a Traditional 7 Brew Store?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
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. You may face competition from other
Source: Item 12 — TERRITORY (FDD pages 45–49)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, franchisees receive an Area of Protection for Traditional 7 Brew stores. This means that during the franchise term, 7 Brew and its affiliates will not operate or allow another franchisee to operate another Traditional 7 Brew store within a defined radius of the franchisee's store. The radius is either 1.5 or 2 miles, depending on the size of the Metropolitan Statistical Area where the store is located.
However, this protection is limited to Traditional 7 Brew stores. 7 Brew retains the right to operate or franchise Non-Traditional 7 Brew stores within the Area of Protection. This distinction is critical because it means a franchisee could face competition from other 7 Brew outlets within their protected area if those outlets are Non-Traditional stores. The FDD specifies that franchisees will not receive an exclusive territory due to 7 Brew's rights concerning Non-Traditional stores.
Furthermore, 7 Brew retains extensive rights outside of the specific protection for Traditional 7 Brew stores. They can operate Traditional 7 Brew stores outside the Area of Protection, offer and sell products and services (even those similar to what the franchisee sells) through various channels, and even acquire businesses that compete with 7 Brew. These activities do not require any compensation to the franchisee, highlighting the non-exclusive nature of the territory granted. Prospective franchisees should carefully consider the potential for competition from both within and outside the 7 Brew system when evaluating this franchise opportunity.