What documents might 7 Brew require the transferee to sign before a franchise transfer?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
transfer's proposed effective date, the transferee agrees to repair and/or replace Operating Assets and upgrade the Store (including its physical structure) in accordance with our then-current requirements and specifications for new 7 BREW Stores within the timeframe we specify following the transfer's effective date;
- i. before the transfer's proposed effective date, you (and your transferring owners) sign a general release, in a form satisfactory to us, of any and all claims against us and our affiliates and our and their respective owners, officers, directors, employees, representatives, agents, successors, and assigns;
- j. we have determined that the purchase price, payment terms, and required financing will not adversely affect the transferee's operation of the Store;
- k. if you or your owners finance any part of the purchase price, you and they agree before the transfer's proposed effective date that the transferee's obligations under promissory notes, agreements, or security interests reserved in the Operating Assets, the Store (including its physical structure), or ownership interests in you are subordinate to the transferee's (and its owners') obligation to pay Royalties, Brand Fund contributions, Tech Fees, and other amounts due to us and our affiliates and otherwise to comply with this Agreement;
- l. before the transfer's proposed effective date, you and your transferring owners (and members of their Immediate Families) agree, for two (2) years beginning on the transfer's effective date, not to engage in any activity proscribed in Section 19.E below; and
- m. before the transfer's proposed effective date, you and your transferring owners agree not directly or indirectly at any time after the transfer or in any manner (except with other 7 BREW Stores you or they own or operate) to: (i) identify yourself or themselves in any business as a current or former 7 BREW Store or as one of our franchisees;
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to the 2025 FDD, 7 Brew requires specific documents to be signed before a franchise transfer can be approved. The transferring franchisee (you) and your transferring owners must sign a general release, in a form satisfactory to 7 Brew, which releases any and all claims against 7 Brew, its affiliates, and their respective owners, officers, directors, employees, representatives, agents, successors, and assigns.
Additionally, you and your transferring owners (and members of their Immediate Families) must agree, for two years beginning on the transfer's effective date, not to engage in any activity proscribed in Section 19.E of the franchise agreement. You and your transferring owners must also agree not to identify yourselves in any business as a current or former 7 Brew Store or franchisee, or use any mark or imitation of a mark associated with 7 Brew, except with other 7 Brew Stores you or they own or operate.
If the proposed transfer involves a non-controlling ownership interest, the transferee must sign 7 Brew's then-current form of Guaranty and Assumption of Obligations or, if applicable, Owner's Undertaking of Non-Monetary Obligations. These requirements ensure that the new owner is bound by the obligations of the franchise agreement and that 7 Brew's interests and brand standards are protected during and after the transfer.