What conditions must a transferee meet to qualify for a 7 Brew franchise transfer?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise or other agreement | Summary |
|---|---|---|
| transferee (and each owner) qualifies | ||
| (including, if transferee is an existing | ||
| franchisee, transferee is in substantial | ||
| operational compliance under all other | ||
| franchise agreements for 7 BREW Stores) | ||
| and is not restricted by another agreement | ||
| from moving forward with the transfer; you | ||
| have paid us and our affiliates all amounts | ||
| due, have submitted all reports, and are not | ||
| then in breach; transferee and its owners and | ||
| affiliates are not in a competitive business; | ||
| training completed; transfer fee paid; | ||
| transferee may occupy Store’s site for | ||
| expected franchise term; transferee (at our | ||
| option) assumes your Franchise Agreement or | ||
| signs our then-current form of franchise | ||
| agreement and other documents for unexpired | ||
| portion of your original franchise term (then- | ||
| current form may have materially different | ||
| terms, except that your original Royalty, | ||
| Brand Fund contribution, and Tech Fee levels | ||
| and Area of Protection definition will remain | ||
| the same for unexpired portion of your | ||
| original franchise term and, if we previously | ||
| agreed to amend your Franchise Agreement | ||
| before you signed it, we will incorporate such | ||
| amendments into the then-current form of | ||
| franchise agreement that is signed by the | ||
| transferee); transferee agrees to repair and | ||
| upgrade; you (and transferring owners) sign | ||
| general release (if applicable state law | ||
| allows); we determine that sales terms and | ||
| financing will not adversely affect Store’s | ||
| operation post-transfer; you subordinate | ||
| amounts due to you; and you stop using | ||
| Marks and our other intellectual property | ||
| (also see (r) below). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 54–61)
What This Means (2025 FDD)
According to the 2025 7 Brew Franchise Disclosure Document, several conditions must be met for a transfer to be approved. The transferee, including each owner, must meet 7 Brew's qualifications. If the transferee is an existing franchisee, they need to be in substantial operational compliance with all other 7 Brew franchise agreements. The transferee must also not be restricted by any other agreement from proceeding with the transfer.
To gain approval, the transferor must have paid all due amounts and submitted all required reports, and not be in breach of any agreements. The transferee, along with its owners and affiliates, cannot be involved in a competitive business. The transferee needs to complete the required training and pay the transfer fee. The transferee must be able to occupy the store's site for the expected franchise term. At 7 Brew's option, the transferee must either assume the existing Franchise Agreement or sign the then-current form of the franchise agreement.
The transferee must agree to repair and upgrade the premises. The transferor (and transferring owners) must sign a general release, if applicable state law allows. 7 Brew must determine that the sales terms and financing will not adversely affect the store's operation after the transfer. The transferor must subordinate any amounts due to them and cease using 7 Brew's trademarks and intellectual property. These conditions ensure that the new franchisee is well-qualified and that the transfer does not negatively impact the 7 Brew brand or other franchisees.