When does the 7 Brew development rider term begin?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Term. This Rider's term begins on the date we sign it and ends on the date when (a) you (or your Approved Affiliate) open for business the final Traditional 7 BREW Store to be developed under the Schedule, or (b) this Rider otherwise is terminated, but in any event this Rider's term will end no later than [Insert Last Date on Schedule], subject to extensions permitted by Section 6(e) of this Rider.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the Development Rights Rider term begins on the date that 7 Brew and the franchisee sign the rider. The term concludes when the franchisee (or an approved affiliate) opens the final traditional 7 Brew store to be developed under the schedule, or when the rider is otherwise terminated. However, the rider term will end no later than the date inserted as the last date on the schedule, although extensions may be permitted.
This means that a franchisee's rights and obligations under the Development Rights Rider, including the schedule for opening new locations, are in effect from the moment the rider is signed. Franchisees must adhere to the development schedule outlined in Exhibit A of the rider to maintain their development rights. Failure to meet these obligations could lead to termination of the rider.
The rider specifies conditions under which 7 Brew can terminate the agreement, such as failure to meet development obligations or breach of other terms. The franchisee should pay close attention to these termination clauses, as no portion of the Development Fee is refundable upon termination. This highlights the importance of carefully reviewing and understanding all terms and conditions before signing the Development Rights Rider.