What controls the construction, development, and operation of the Traditional 7 Brew Store after the franchise agreement is signed?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
its incompatibility with certain factors bearing on a site's suitability as a location for a Traditional 7 BREW Store. 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.
- (c) If we accept the proposed site but you (or your Approved Affiliate) have not yet signed a franchise agreement for that Traditional 7 BREW Store, you agree—concurrently with signing the lease for or otherwise securing the right to possess the site—to sign (or have your Approved Affiliate sign) a separate franchise agreement (and related documents) for that Store. If you (or your Approved Affiliate) fail to do so, or cannot obtain lawful possession of the acceptable proposed site within the time period we designate, we may withdraw our acceptance of the proposed site and exercise any of our other rights under this Rider. After you and your owners (or your Approved Affiliate and its owners) sign the franchise agreement (and related documents, including Guaranty and Assumption of Obligations), its terms and conditions will control the construction, development, and operation of the Traditional 7 BREW Store (except that the required opening date is governed exclusively by the Schedule in this Rider, as provided in Section 3 above).
- (d) We will not be involved in reviewing, negotiating, approving, or accepting any lease you sign for the Traditional 7 BREW Stores you construct and develop under this Rider. You alone are exclusively responsible for all lease matters. The only requirement we impose upon you is that the site's lease must incorporate the terms of our then-current Lease Rider for Traditional 7 BREW Stores. You must send us a fully-signed copy of each site's lease within ten (10) days after our request.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, once the franchise agreement is signed by the franchisee and their owners (or an approved affiliate and its owners), the terms and conditions outlined in that agreement will govern the construction, development, and operation of the Traditional 7 Brew Store. An exception to this is that the required opening date is determined exclusively by the schedule outlined in the Development Rider. This means that franchisees must adhere to the stipulations within the franchise agreement to ensure compliance in building and running their 7 Brew location.
Before signing the franchise agreement, 7 Brew must accept the proposed site for the store. The franchisee must sign the franchise agreement concurrently with signing the lease or securing the right to possess the site. Failure to sign the franchise agreement or obtain lawful possession of the site allows 7 Brew to withdraw their acceptance of the site. This highlights the importance of securing both the location and the franchise agreement simultaneously to avoid potential setbacks.
7 Brew also retains the right to delay the development or opening of additional stores if they believe the franchisee is not operationally, managerially, or otherwise prepared to meet their standards. This delay can be implemented at any point after the application for another store is submitted or after a store has been constructed but not yet opened. However, 7 Brew states that the delay will not cause the franchisee to breach their development obligations under the schedule, unless 7 Brew is willing to extend the schedule proportionately to account for the delay.