What is the dependency between securing a site and signing a franchise agreement for a 7 Brew?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
If we accept a proposed site but you (or your Approved Affiliate) have not yet signed a franchise agreement for that 7 BREW Store, the DRR requires you—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. Nevertheless, we might allow you to sign the Franchise Agreement later at or closer to the Store's opening—if you are diligently working on the Store's development. If you (or your Approved Affiliate) cannot obtain lawful possession of the acceptable proposed site within the time period we designate, we have the right to withdraw our acceptance of the proposed site (we have that same right if you fail to sign the Franchise Agreement when required). 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 7 BREW Store (except that the required opening date is governed exclusively by the DRR's development schedule). (DRR—Section 6(c))
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 34–45)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, securing an acceptable site and signing a franchise agreement are closely linked. Specifically, if 7 Brew accepts a proposed site, the franchisee must sign a franchise agreement when signing the lease or otherwise securing the right to possess the site. This requirement is outlined in the Development Rights Rider (DRR). However, 7 Brew may allow the franchisee to sign the Franchise Agreement later, closer to the store's opening, if the franchisee is actively working on the store's development.
7 Brew retains the right to withdraw acceptance of a proposed site if the franchisee cannot obtain lawful possession within the designated time or fails to sign the franchise agreement when required. Once the franchise agreement is signed by the franchisee and their owners, its terms and conditions govern the construction, development, and operation of the 7 Brew store, with the exception that the required opening date is determined exclusively by the development schedule in the DRR.
This policy ensures that 7 Brew maintains control over site selection and the pace of development. It also protects 7 Brew by allowing them to terminate the Development Rights Rider if the franchisee fails to secure acceptable store sites and meet the opening deadlines. For a prospective franchisee, this means that finding and securing a suitable location is a critical first step that directly impacts their ability to move forward with the franchise. They must be prepared to sign the franchise agreement promptly upon securing a site, unless alternative arrangements are made with 7 Brew.