What documents must a 7 Brew franchisee sign to acquire a successor franchise?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
se have brought the Store into full compliance with thenapplicable specifications and standards for new 7 BREW Stores (regardless of cost) before this Agreement expires. We have no obligation to grant you a successor franchise if you wish to relocate the Store or no longer have the right to occupy the Store at its original site.
To acquire a successor franchise, you and your owners must: (i) sign our then-current form of franchise agreement (and related documents), which may contain terms and conditions differing materially from any and all of those in this Agreement, including higher Royalties, Brand Fund contributions, and Tech Fees, but which, for the avoidance of doubt, will be modified to include any specifically-negotiated provisions to which we agreed with you before you signed this Agreement, will retain the same defined Area of Protection appearing in this Agreement, and will be modified to reflect that it is for a successor franchise; (ii) pay us a successor-franchise fee equal to Ten-Thousand Dollars ($10,000); and (iii) sign a general release in the form we specify as to any and all claims against us, our affiliates, and our and their respective ow
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, to obtain a successor franchise, a franchisee and their owners must sign 7 Brew's then-current form of franchise agreement, including any related documents. The terms and conditions within this agreement may differ significantly from the original franchise agreement, potentially involving higher royalties, brand fund contributions, and tech fees. However, any previously negotiated provisions will be retained, the Area of Protection will remain the same, and the agreement will reflect that it is for a successor franchise.
In addition to the franchise agreement, franchisees must also sign a general release in a form specified by 7 Brew, which covers any claims against 7 Brew, its affiliates, and their respective owners, officers, directors, employees, agents, representatives, successors, and assigns. This release is a standard legal document used to prevent future litigation. The documents, along with the successor-franchise fee, must be signed and returned within 30 days of receipt.
Failure to meet these requirements, including the timely return of signed documents and the successor-franchise fee of $10,000, will be considered an irrevocable decision not to acquire a successor franchise. 7 Brew may also impose additional requirements to be completed by designated deadlines following the commencement of the successor-franchise term. These conditions ensure that the franchisee is committed to the brand and compliant with current standards before continuing the franchise relationship.