What factors does 7 Brew base its site acceptance decision on?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
you in this Rider and for reserving the Territory for you to the exclusion of others (except as provided in this Rider with respect to Non-Traditional 7 BREW Stores) while you are in compliance with this Rider;
- (ii) fully earned by us when we and you sign this Rider; and
- (iii) not refundable under any circumstances, even if you do not comply or attempt to comply with the Schedule and we then terminate this Rider.
6. Grant of Franchises and Site Selection and Acquisition.
- (a) You must send us a separate application for each Traditional 7 BREW Store that you (or your Approved Affiliate) wish to develop in the Territory. You must locate, evaluate, select, and secure the Store's site. We will not search for or select the site for you. In granting you development rights under this Rider, we are relying on your knowledge of the real estate market in the Territory and your ability to locate and access sites.
- (b) We will give you our then-current criteria for Traditional 7 BREW Store sites (including, without limitation, population density and other demographic characteristics, visibility, traffic flow, competition, accessibility, ingress and egress, size, and other physical and commercial characteristics) to help you select and identify each Traditional 7 BREW Store site. We will review potential Traditional 7 BREW Store sites that you identify within the Territory but have no obligation to visit the Territory to inspect physically the sites you propose for your potential Stores. We have the right to condition our acceptance of a proposed site, or a proposed site visit, on your first sending us complete site reports and other materials (including, without limitation, photographs and digital recordings) we request. You must give us all information and materials we request to assess each proposed Traditional 7 BREW Store site.
We will not unreasonably withhold acceptance of a site if, in our and our affiliates' experience and based on the factors outlined above, the proposed site is not inconsistent with sites that we and our affiliates regard as favorable or that otherwise have been successful sites in the past for Traditional 7 BREW Stores. However, we have the absolute right to reject any site not meeting our criteria or to require you to acknowledge in writing that a site you have chosen, while acceptable to us, is not recommended due to its incompatibility with certain factors bearing on a site's suitability as a location for a Traditional 7 BREW Store.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the company provides franchisees with its current criteria for site selection. These criteria include factors such as population density, demographic characteristics, visibility, traffic flow, competition, accessibility (ingress and egress), size, and other physical and commercial characteristics. 7 Brew relies on the franchisee's knowledge of the real estate market and their ability to locate and access suitable sites within the designated territory. While 7 Brew will review potential sites identified by the franchisee, they are under no obligation to physically inspect the sites unless they deem it necessary.
7 Brew has the right to condition their acceptance of a proposed site, or even a site visit, on the franchisee first providing complete site reports and other requested materials, including photographs and digital recordings. The franchisee is responsible for providing all information and materials necessary for 7 Brew to assess each proposed site. However, 7 Brew may reject any site that does not meet its criteria or require the franchisee to acknowledge in writing that a chosen site, while acceptable to 7 Brew, is not recommended due to incompatibility with certain factors affecting its suitability.
7 Brew's acceptance of a site only indicates that they believe the site is not inconsistent with sites that they regard as favorable or that have been successful in the past. The document makes it clear that applying criteria effective with other sites might not accurately reflect the potential of all sites, and demographic or other factors included in or excluded from their criteria could change, altering a site's potential. The uncertainty and instability of these criteria are beyond 7 Brew's control, and they are not responsible if a site fails to meet the franchisee's expectations. This highlights the importance of the franchisee's own due diligence and market knowledge in the site selection process.