Does the Development Rights Rider (DRR) term for 7 Brew have renewal or extension options?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise or other agreement | Summary |
|---|---|---|
| a. Length of the franchise term | 3.B of Franchise Agreement and 2 and 3 of DRR | Starts on date Franchise Agreement is signed and expires 15 years from date on which the Store opens for business. DRR term depends on your development commitment. |
| b. Renewal or extension of the term | 17 of Franchise Agreement | If you are in good standing, you potentially may acquire 2 successor franchises—each for 5 years—on our then-current terms (although we often give franchisees additional successor franchise rights if they ask for it). No renewal or extension of DRR. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 54–61)
What This Means (2025 FDD)
According to the 2025 7 Brew Franchise Disclosure Document, the Development Rights Rider (DRR) does not have renewal or extension options. The length of the DRR term depends on the franchisee's development commitment.
However, the standard Franchise Agreement for a single 7 Brew location does offer renewal opportunities. If a franchisee is in good standing with 7 Brew, they may be able to acquire two successor franchises, each for a term of 5 years, based on the then-current terms and conditions.
It is important to note that while 7 Brew does not offer renewal or extensions for the DRR, they do state that they often give franchisees additional successor franchise rights if they ask for it. A prospective franchisee should discuss this possibility with 7 Brew during their due diligence.