What is the duration of the second (and final) successor franchise for a 7 Brew store?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
If we grant you a first five (5)-year successor franchise, you will have the right to acquire a second (and final) successor franchise to continue operating the Store as a 7 BREW Store, the term of which will commence immediately upon expiration of the first successor-franchise term and expire five (5) years from that date, if you also have complied as of the end of the first successor-franchise term with the same conditions for a successor-franchise grant as those described in this Section 17 with respect to the first successor-franchise grant. Otherwise, you will have no right to acquire a second (and final) successor franchise. In connection with your acquisition of a second successor franchise, you must 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 specificallynegotiated 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 second (and final) successor franchise (i.e., that no further successor franchises will be granted).
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to the 2025 FDD, if 7 Brew grants a franchisee a first 5-year successor franchise, the franchisee has the right to acquire a second (and final) successor franchise. The term for this second successor franchise will commence immediately after the expiration of the first successor franchise term. The second successor franchise will then expire five years from that date.
To be eligible for this second successor franchise, the franchisee must have complied with the same conditions for the initial successor franchise grant by the end of the first successor franchise term. If the franchisee fails to meet these conditions, they will not have the right to acquire the second successor franchise.
In acquiring the second successor franchise, the franchisee is required to sign 7 Brew's then-current form of franchise agreement and related documents. It is important to note that the terms and conditions in this new agreement may differ significantly from those in the original agreement, potentially including higher royalties, brand fund contributions, and tech fees. However, any specifically negotiated provisions agreed upon before the initial agreement will be included, the Area of Protection will remain the same, and the agreement will reflect that it is for a second and final successor franchise, meaning no further extensions will be granted.