What is the consequence if the 7 Brew transferee does not have the right to occupy the store's site?

According to 7 Brew's 2025 Franchise Disclosure Document, a proposed transferee must have the right to occupy the store's site for the expected franchise term as a condition for transfer approval. This means that if the person or entity seeking to acquire an existing 7 Brew franchise location does not secure the necessary legal rights to occupy and operate the premises for the duration of the franchise agreement, the transfer will not be approved by 7 Brew.

This requirement protects 7 Brew by ensuring that the new franchisee has a stable and secure location from which to operate. Without the right to occupy the site, the transferee's ability to run the business could be jeopardized, potentially harming the 7 Brew brand and reputation. This condition also aligns with standard franchising practices, where securing and maintaining a suitable location is crucial for the success of the franchise.

For a prospective franchisee, this underscores the importance of thoroughly investigating and securing the lease or property rights for the 7 Brew location they intend to acquire. It is not enough to simply agree to purchase the business; the transferee must also ensure that they can legally operate at the existing site for the remainder of the franchise term. This may involve negotiating with the landlord, reviewing the existing lease agreement, and obtaining any necessary consents or assignments. Failure to meet this condition will prevent the transfer from proceeding, potentially resulting in financial losses and wasted effort for both the transferor and the transferee.