What fee does 7 Brew charge for the transfer of a non-controlling ownership interest?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
in this Agreement by virtue of Section 9-408 of the Uniform Commercial Code is limited as described in Section 9-408(d) of the Uniform Commercial Code.
C. Conditions for Approval of Transfer
If you and your owners are in full compliance with this Agreement, then, subject to this Section 16's other provisions:
- (1) We will approve the transfer of a non-controlling ownership interest in you if the proposed transferee and its owners are of good moral character, have no ownership interest in and do not perform services for (and have no affiliates with an ownership interest in or performing services for) a Competitive Business, otherwise meet our then-applicable standards f
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the transfer of a non-controlling ownership interest is subject to a $1,000 transfer fee. This fee is required to be paid to 7 Brew before the transfer can be approved.
However, the transfer is contingent upon meeting several conditions. The proposed transferee and their owners must be of good moral character, must not have any ownership or service relationship with a Competitive Business, and must meet 7 Brew's standards for non-controlling owners. Additionally, the transferee must sign 7 Brew's current form of Guaranty and Assumption of Obligations or Owner's Undertaking of Non-Monetary Obligations.
It is important to note that this fee and these conditions apply specifically to the transfer of a non-controlling ownership interest. The FDD defines 'controlling ownership interest' in Section 21.M, which is not provided in the excerpt. Transfers involving franchise rights or a controlling ownership interest are subject to different, more extensive conditions and fees, as detailed elsewhere in the FDD.