factual

What documents must the transferee sign before a 7 Brew franchise transfer's effective date?

7_Brew Franchise · 2025 FDD

Answer from 2025 FDD Document

ss;

  • d. before or after the transfer's proposed effective date (as we determine), the transferee's management personnel, if different from your management personnel, satisfactorily complete our then-current Initial Training;
  • e. the transferee has the right to occupy the Store's site for the expected franchise term;
  • f. before the transfer's proposed effective date, the transferee and each of its owners (if the transfer is of the franchise rights granted by this Agreement), or you and your owners (if the transfer is of a controlling ownership interest in you or in an Entity owning a controlling ownership interest in you), if we so require, sign our then-current form of franchise agreement and related documents (including a Guaranty and Assumption of Obligations and, if applicable, Owner's Undertaking of Non-Monetary Obligations), any and all of the provisions of which may differ materially from any and all of those contained in this Agreement, provided, however, that (i) the term of the new franchise agreement signed will equal the unexpired portion of the Term, (ii) the Royalty, Brand Fund contribution, and Tech Fee levels specified in this Agreement will be substituted into the then-current form of franchise

agreement that is signed for the balance of the initial franchise term (i.e., the unexpired portion of the Term), (iii) the new franchise agreement will retain the same defined Area of Protection appearing in this Agreement, and (iv) if we previously agreed to amend this Agreement before you signed it, we will incorporate such amendments into the then-current form

Source: Item 22 — CONTRACTS (FDD pages 82–83)

What This Means (2025 FDD)

According to 7 Brew's 2025 Franchise Disclosure Document, before the proposed effective date of a franchise transfer, the transferee may be required to sign 7 Brew's then-current form of franchise agreement and related documents. These related documents include a Guaranty and Assumption of Obligations and, if applicable, an Owner's Undertaking of Non-Monetary Obligations.

The franchise agreement signed by the transferee may differ materially from the original franchise agreement. However, the new franchise agreement will maintain certain key terms from the original agreement, such as the unexpired portion of the original term, the Royalty, Brand Fund contribution, and Tech Fee levels, and the same defined Area of Protection.

In addition to the franchise agreement, the original franchisee (transferor) and their transferring owners must sign a general release, in a form satisfactory to 7 Brew, of any and all claims against 7 Brew and its affiliates. They must also agree to certain non-compete and non-disclosure obligations for a specified period following the transfer.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.