When must the Development Fee be paid to 7 Brew for the development rights granted under the rider?
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 |
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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 is due when the Development Rights Rider is signed. Specifically, the FDD states that as consideration for the development rights granted under the Rider, the franchisee must pay the Development Fee when signing the Rider. The Rider will not be effective, and the franchisee will have no development rights, until 7 Brew receives the Development Fee.
The Development Fee covers the rights granted in the Rider and reserves the territory for the franchisee, excluding others (except for Non-Traditional 7 Brew Stores) as long as the franchisee complies with the Rider. This fee is fully earned by 7 Brew upon signing the Rider and is non-refundable under any circumstances, even if the franchisee fails to comply with the development schedule and the Rider is terminated.
The Development Fee is comprised of two parts: a $35,000 initial franchise fee for the First Franchise Agreement, and an additional $10,000 for each additional Traditional 7 Brew Store the franchisee commits to developing and operating in the Territory during the Rider's term. This means the total Development Fee will vary depending on the number of stores the franchisee plans to develop under the agreement. Prospective franchisees should carefully consider their development plans and financial capabilities before committing to a specific number of stores, as the Development Fee is non-refundable.