What is the dependency between signing the lease and the franchise agreement for a 7 Brew store?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) If we accept the proposed site but you (or your Approved Affiliate) have not yet signed a franchise agreement for that Traditional 7 BREW Store, you agree—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. If you (or your Approved Affiliate) fail to do so, or cannot obtain lawful possession of the acceptable proposed site within the time period we designate, we may withdraw our acceptance of the proposed site and exercise any of our other rights under this Rider. 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 Traditional 7 BREW Store (except that the required opening date is governed exclusively by the Schedule in this Rider, as provided in Section 3 above).
- (d) We will not be involved in reviewing, negotiating, approving, or accepting any lease you sign for the Traditional 7 BREW Stores you construct and develop under this Rider. You alone are exclusively responsible for all lease matters. The only requirement we impose upon you is that the site's lease must incorporate the terms of our then-current Lease Rider for Traditional 7 BREW Stores. You must send us a fully-signed copy of each site's lease within ten (10) days after our request.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, signing a lease for a Traditional 7 Brew store site is directly linked to signing the franchise agreement. Specifically, if 7 Brew accepts a proposed site, the franchisee must sign the franchise agreement concurrently with signing the lease or otherwise securing the right to possess the site.
If the franchisee fails to sign the franchise agreement at the same time as securing the lease, or if they cannot obtain lawful possession of the site within the period designated by 7 Brew, the company reserves the right to withdraw its acceptance of the proposed site. This clause emphasizes the importance of aligning the lease and franchise agreement timelines to ensure the franchisee can proceed with developing the 7 Brew store.
7 Brew does not get involved in the lease negotiations themselves, and the franchisee is solely responsible for all lease matters. However, the lease must incorporate the terms of 7 Brew's current Lease Rider for Traditional 7 Brew Stores. The franchisee must also provide 7 Brew with a fully signed copy of the lease within ten days of the company's request. This ensures that 7 Brew is aware of the lease terms and that they align with the company's requirements.
This concurrent signing requirement protects 7 Brew by ensuring that a franchise agreement is in place before the franchisee commits to a specific location through a lease. It also allows 7 Brew to maintain control over site selection and development, ensuring that new locations meet their standards and contribute positively to the brand. Franchisees need to be aware of this dependency and coordinate their lease negotiations with the franchise agreement process to avoid potential complications or loss of site approval.