What is the cure period for a 7 Brew franchisee to satisfy unpaid judgments of at least $25,000?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise or other agreement | Summary |
|---|---|---|
| f. Termination by franchisor with cause | 18.B of Franchise Agreement and 8 of DRR 4(b) of Manufacturing Agreement | We have the right to terminate your Franchise |
| Agreement (and development rights) only if | ||
| you or your owners commit one of several | ||
| violations. | ||
| While termination of the DRR does not | ||
| impact any then-effective franchise | ||
| agreements, termination of a franchise | ||
| agreement entitles us to terminate the DRR. | ||
| Manufacturer has the right to terminate the | ||
| Manufacturing Agreement for cause. | ||
| g. “Cause” defined curable defaults | 18.B of Franchise Agreement and 8 of DRR 4(b) of Manufacturing Agreement | You have 5 days to cure Gross Sales |
| reporting, payment (to us), and insurance | ||
| defaults and defaults under any note, lease, or | ||
| agreement relating to Store’s operation or | ||
| ownership; 10 days to satisfy unpaid | ||
| judgments of at least $25,000; 30 days to pay | ||
| suppliers and to cure other defaults not listed | ||
| in (h) below; and 60 days to vacate | ||
| attachment, seizure, or levy of Storeor | ||
| appointment of receiver, trustee, or liquidator. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 54–61)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, a franchisee has 10 days to satisfy unpaid judgments of at least $25,000. This falls under the franchisor's right to terminate the Franchise Agreement with cause if the franchisee fails to address certain defaults within specified timeframes. This cure period is specifically for satisfying the unpaid judgements.
This means that if a 7 Brew franchisee has an unpaid judgment of $25,000 or more against them, 7 Brew could begin the termination process if the franchisee does not resolve the judgment within 10 days. The franchisee must act quickly to either pay the judgment, negotiate a settlement, or otherwise resolve the issue to avoid potential termination of the franchise agreement.
Cure periods are common in franchise agreements, providing franchisees an opportunity to correct certain defaults before the franchisor takes action to terminate the agreement. The length of the cure period can vary depending on the nature of the default, with more critical issues often having shorter cure periods. Franchisees should be aware of all potential defaults and their corresponding cure periods to ensure they can maintain compliance with the franchise agreement.
It is important for prospective 7 Brew franchisees to understand these termination conditions and cure periods, as failure to meet these obligations could result in the loss of their franchise. Franchisees should maintain open communication with 7 Brew and seek legal counsel if they are facing financial difficulties or potential defaults to ensure they understand their rights and obligations under the franchise agreement.