What is the deadline for 7 Brew to exercise its right-of-first-refusal after receiving the offer and information from the franchisee?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
If we do not exercise our right-of-first-refusal, the title-holder may complete the sale to the proposed buyer on the original offer's terms. If the title-holder does not complete the sale to the proposed buyer within sixty (60) days after we notify the title-holder that we do not intend to exercise our right-of-first-refusal, or if there is a material change in the sale's terms (which the title-holder agrees to tell us promptly), we will have an additional right-of-first-refusal during the thirty (30) days following either expiration of the sixty (60) day period or our receipt of notice of the material change(s) in the sale's terms.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to the 2025 FDD, if a 7 Brew franchisee (referred to as the title-holder in the document) intends to sell their store, 7 Brew has a right-of-first-refusal. This means the franchisee must first offer the business to 7 Brew on the same terms they've agreed upon with a potential buyer.
If 7 Brew chooses not to exercise this right, the franchisee can proceed with the sale to the original proposed buyer, provided the sale is completed within sixty days of 7 Brew's notification of non-interest. Should the sale not occur within this 60-day window, or if there are any material changes to the sale's terms, 7 Brew retains an additional right-of-first-refusal. This grants 7 Brew another thirty days to reconsider purchasing the franchise under the revised terms or after the expiration of the initial 60-day period.
This clause protects 7 Brew's interests by allowing them to control who enters their franchise system. For a franchisee, it means that selling their business involves an extra step of offering it to 7 Brew first and potentially waiting for a response, which could affect the timeline of the sale.