What costs must a 7 Brew franchisee reimburse during the relocation process?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
ke you to open at the new site.
Conditions for relocation approval are (1) the new site is acceptable to us, (2) you pay us a $5,000 relocation fee, (3) you reimburse any costs we incur during the relocation process, (4) you confirm that your original Franchise Agreement remains in effect and governs the Store's operation at the new site with no change in the franchise term, (5) you sign a general release, in a form satisfactory to us, of any and all claims against us and our owners, affiliates, officers, directors, employees, and agents, (6) you continue operating the Store at its original site until we authorize its closure, and (7) you de-brand and de-identify the Store's former premises within the timeframe we specify and at your own expense so it no longer is associated in any manner (in our opinion
Source: Item 12 — TERRITORY (FDD pages 45–49)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, a franchisee seeking to relocate their store must meet several conditions, including reimbursing 7 Brew for any costs they incur during the relocation process. This means that in addition to a $5,000 relocation fee, the franchisee is responsible for covering any expenses 7 Brew incurs while assessing and facilitating the move.
The FDD does not specify what these reimbursable costs might include, but they could potentially cover expenses like travel, legal fees, consulting services, or other administrative costs that 7 Brew incurs while evaluating the new site and ensuring the relocation aligns with the brand's standards and interests. This lack of specificity introduces a degree of financial uncertainty for the franchisee, as the total relocation expenses could vary significantly depending on the complexity of the move and the costs 7 Brew decides to pass on.
It is important to note that relocation is not guaranteed. 7 Brew retains the right to deny a relocation request if it is not in the best interest of the system. Even if relocation is approved, the franchisee must continue operating at the original site until 7 Brew authorizes closure and must also de-brand the former premises at their own expense. This further adds to the financial burden and logistical challenges associated with relocating a 7 Brew franchise.