What does the Development Fee for 7 Brew cover?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
develop, open, and operate Traditional 7 BREW Stores pursuant to this Rider. This Rider also does not give you (or your Approved Affiliates) any independent right to use the 7 BREW trademark or our other trademarks and commercial symbols. The right to use our trademarks and commercial symbols is granted only under a franchise agreement signed directly with us. This Rider only grants you potential development rights if you fully comply with its terms.
| 5. Development Fee. As consideration for the development rights we grant you under |
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| this Rider, you must pay us—when you sign this Rider—a total of Thousand Dollars |
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the Development Fee serves as consideration for the development rights granted to the franchisee under the Development Rights Rider. This fee secures the franchisee's exclusive rights to develop 7 Brew stores within a specified territory, preventing others from establishing franchises in the same area, with exceptions for Non-Traditional 7 Brew stores.
The Development Fee is fully earned by 7 Brew upon signing the Development Rights Rider and is non-refundable under any circumstances, even if the franchisee fails to meet the development schedule outlined in the Rider or if the agreement is terminated due to non-compliance. This means that once the agreement is signed, 7 Brew retains the fee regardless of the franchisee's subsequent performance or any termination of the agreement.
The total Development Fee is calculated based on a combination of the initial franchise fee for the first store and an additional fee for each additional store the franchisee commits to developing. Specifically, the fee includes the $35,000 initial franchise fee for the first store, plus $10,000 for each additional Traditional 7 Brew store the franchisee plans to construct and operate within the designated territory during the Rider's term. The Development Rights Rider becomes effective only upon receipt of the full Development Fee by 7 Brew, highlighting the importance of this payment in securing the development rights.