What constitutes a failure to comply with other obligations under the 7 Brew franchise agreement?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
ain the right to establish and modify periodically the Brand Standards you have agreed to follow, you retain complete responsibility and authority for the Store's management and operation and for implementing and maintaining Brand Standards at the Store.
You acknowledge the importance of operating the Store in full compliance with this Agreement and Brand Standards. You further acknowledge that your deviation from any contractual requirement, including any Brand Standard, is a violation of this Agreement and will trigger incalculable administrative and management costs for us to address the violation (separate and apart from any damages your violation might cause to the Franchise System, our business opportunities, or the goodwill associated with the Marks).
D. Approved Products, Services, and Suppliers
(1) We may periodically designate and approve Brand Standards, manufacturers, suppliers, and/or distributors for the Operating Assets, products, and services we periodically authorize 7 BREW Stores to use or sell.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to the 2025 7 Brew Franchise Disclosure Document, failing to meet obligations under the franchise agreement, including Brand Standards, constitutes a violation. 7 Brew emphasizes the importance of franchisees operating their stores in full compliance with the franchise agreement and Brand Standards. Deviation from any contractual requirement or Brand Standard is considered a violation, leading to potentially significant administrative and management costs for 7 Brew to address.
Specifically, if a 7 Brew franchisee is developing multiple stores, they must meet construction deadlines outlined in the development schedule. Failure to comply with these deadlines and not curing the non-compliance within 90 days after written notice can lead to termination of the development rights. 7 Brew retains the right to enforce these development obligations strictly.
Furthermore, to be eligible for a successor franchise agreement, a franchisee must have substantially complied with all obligations under the existing agreement, including operating the store in substantial compliance with Brand Standards. This compliance is assessed during a business review conducted by 7 Brew. Therefore, maintaining compliance with all aspects of the franchise agreement and Brand Standards is crucial for franchisees not only to avoid penalties and maintain their development rights but also to secure future franchise opportunities with 7 Brew.