What is the consequence if the franchisee proceeds with a site that 7 Brew has not accepted?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
We agree to use reasonable efforts to review and accept (or not to accept) each site you propose within thirty (30) days after we receive all requested information and materials. If we do not accept the site in writing within thirty
(30) days, the site will be deemed rejected. You may not proceed with a site that we have not accepted.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, a franchisee is not allowed to proceed with a site that 7 Brew has not accepted. The FDD states that 7 Brew will use reasonable efforts to review and accept (or not accept) each site within 30 days of receiving all requested information. If 7 Brew does not accept the site in writing within that 30-day period, the site will be considered rejected.
This means that a prospective 7 Brew franchisee must obtain approval from 7 Brew for their chosen site before moving forward with development. If the franchisee begins construction or otherwise commits to a location without 7 Brew's explicit consent, they would be in violation of the franchise agreement.
The FDD does not explicitly state the penalties for violating this site selection rule. However, it is reasonable to assume that proceeding with an unapproved site could lead to consequences such as termination of the franchise agreement, loss of investment, and legal action from 7 Brew. Therefore, it is crucial for franchisees to adhere to the site selection process outlined in the FDD and obtain written approval from 7 Brew before taking any steps to secure or develop a location.