What is the exception to 7 Brew's right to delay development or opening of a Traditional 7 Brew store?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) In addition to our rights with respect to proposed Traditional 7 BREW Store sites, we have the right to delay your development and/or opening of additional Traditional 7 BREW Stores within the Territory for the time period we deem best if we believe in our sole judgment, when you submit your application for another Traditional 7 BREW Store or after you (or your Approved Affiliate) have developed and constructed but not yet opened a particular Store, that you (or your Approved Affiliate) are not yet operationally, managerially, or otherwise prepared (no matter the reason) to develop, open, and/or operate the additional Traditional 7 BREW Store in full compliance with our standards and specifications. We have the right to delay additional development and/or a Traditional 7 BREW Store's opening for the time period we deem best as long as the delay will not in our reasonable opinion cause you to breach your development obligations under the Schedule (unless we are willing to extend the Schedule proportionately to account for the delay).
Furthermore, if we delay your (or your Approved Affiliate's) progress in satisfying your development obligations under the Schedule due to our failure to accept a proposed Traditional 7 BREW Store site (which is acceptable based on the criteria described above) in accordance with this Section 6, you provide written notice to us and give us at least ten (10) days to cure such delay, but we fail to cure such delay within that ten (10)-day period, then we agree that you have the right following the delay to adjust the Schedule unilaterally to add the number of days we delayed your progress to the opening deadline for each additional Traditional 7 BREW Store to be constructed and developed by you (or your Approved Affiliate) under the Schedule. (In other words, if we delayed your progress by sixty (60) days after you provided us written notice and an opportunity to cure (having failed to cure the delay within ten (10) days), you have the right unilaterally to add
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to the 2025 FDD, 7 Brew has the right to delay the development or opening of additional Traditional 7 Brew stores if they believe a franchisee is not prepared to operate in full compliance with their standards. However, this right is limited. 7 Brew cannot delay development or opening if the delay would cause the franchisee to breach their development obligations under the agreed-upon schedule, unless 7 Brew is willing to extend the schedule to account for the delay.
This provision protects franchisees from potentially unreasonable delays imposed by 7 Brew that could jeopardize their ability to meet the development schedule. It ensures that 7 Brew must consider the impact of any delays on the franchisee's obligations and be willing to offer a corresponding extension to the schedule. This clause is important for franchisees who are investing significant capital and resources to meet the development timeline.
If 7 Brew fails to accept a proposed Traditional 7 Brew store site that meets the established criteria, and this failure delays the franchisee's progress, the franchisee must provide written notice to 7 Brew and allow ten days for them to rectify the delay. Should 7 Brew fail to address the delay within this period, the franchisee has the right to unilaterally adjust the schedule by adding the number of days of the delay to the opening deadline for each additional store to be constructed. For example, a sixty-day delay, after the ten-day cure period, allows the franchisee to add sixty days to each subsequent date in the schedule.