factual

What criteria does 7 Brew provide to franchisees for selecting Traditional 7 Brew Store sites?

7_Brew Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (a) You must send us a separate application for each Traditional 7 BREW Store that you (or your Approved Affiliate) wish to develop in the Territory. You must locate, evaluate, select, and secure the Store's site. We will not search for or select the site for you. In granting you development rights under this Rider, we are relying on your knowledge of the real estate market in the Territory and your ability to locate and access sites.
  • (b) We will give you our then-current criteria for Traditional 7 BREW Store sites (including, without limitation, population density and other demographic characteristics, visibility, traffic flow, competition, accessibility, ingress and egress, size, and other physical and commercial characteristics) to help you select and identify each Traditional 7 BREW Store site. We will review potential Traditional 7 BREW Store sites that you identify within the Territory but have no obligation to visit the Territory to inspect physically the sites you propose for your potential Stores. We have the right to condition our acceptance of a proposed site, or a proposed site visit, on your first sending us complete site reports and other materials (including, without limitation, photographs and digital recordings) we request. You must give us all information and materials we request to assess each proposed Traditional 7 BREW Store site.

We will not unreasonably withhold acceptance of a site if, in our and our affiliates' experience and based on the factors outlined above, the proposed site is not inconsistent with sites that we and our affiliates regard as favorable or that otherwise have been successful sites in the past for Traditional 7 BREW Stores. However, we have the absolute right to reject any site not meeting our criteria or to require you to acknowledge in writing that a site you have chosen, while acceptable to us, is not recommended due to 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

Source: Item 22 — CONTRACTS (FDD pages 82–83)

What This Means (2025 FDD)

According to 7 Brew's 2025 Franchise Disclosure Document, the franchisee is responsible for locating, evaluating, and securing a site for the Traditional 7 Brew Store. 7 Brew relies on the franchisee's knowledge of the real estate market in their territory and their ability to find and access suitable locations. 7 Brew does not search for or select the site for the franchisee. However, 7 Brew will provide its then-current criteria for Traditional 7 Brew Store sites to assist the franchisee in the selection process. These criteria include factors such as population density, demographic characteristics, visibility, traffic flow, competition, accessibility, ingress and egress, size, and other physical and commercial characteristics.

7 Brew will review potential sites identified by the franchisee within the territory. However, 7 Brew has no obligation to physically inspect the sites. 7 Brew has the right to require complete site reports and other materials, including photographs and digital recordings, before accepting a proposed site or conducting a site visit. The franchisee must provide all information and materials requested by 7 Brew to assess each proposed site.

7 Brew states that its recommendation or acceptance of a site only indicates that it believes the site is not inconsistent with sites that it regards as favorable or that otherwise have been successful sites in the past for 7 Brew Stores. The FDD also states that applying criteria appearing effective with other sites might not accurately reflect the potential of all sites, and demographic or other factors included in or excluded from their criteria could change, altering a site's potential. The uncertainty and instability of these criteria are beyond 7 Brew's control, and they are not responsible if a site fails to meet the franchisee's expectations.

7 Brew will not unreasonably withhold acceptance of a site if, based on their experience and the factors outlined above, the proposed site is not inconsistent with sites that they regard as favorable or that otherwise have been successful sites in the past for Traditional 7 Brew Stores. However, 7 Brew has the absolute right to reject any site not meeting their criteria or to require the franchisee to acknowledge in writing that a site they have chosen, while acceptable to 7 Brew, is not recommended due to its incompatibility with certain factors bearing on a site's suitability as a location for a Traditional 7 Brew Store. 7 Brew agrees to use reasonable efforts to review and accept (or not to accept) each site the franchisee proposes within thirty (30) days after they receive all requested information and materials. If 7 Brew does not accept the site in writing within thirty (30) days, the site will be deemed rejected, and the franchisee may not proceed with a site that 7 Brew has not accepted.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.