Where in the 7 Brew franchise agreement can I find details regarding territorial rights?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
C. Territorial Rights
During the Term, we and our affiliates will not, except as provided in this Section 3.C and in Section 3.D below, own or operate, or allow another franchisee or licensee to own or operate, another Traditional 7 BREW Store that has its physical location within the geographical area described on Exhibit B (the "Area of Protection"). However, there are no restrictions whatsoever on our and our affiliates' activities with respect to Non-Traditional 7 BREW Stores physically located within the Area of Protection, including, but not limited to, our and our affiliates' right to own and operate and to grant others the right to own and operate such Non-Traditional 7 BREW Stores within the Area of Protection.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, details about territorial rights are found in Section 3.C of the franchise agreement, specifically under the heading "Territorial Rights." This section states that during the term of the agreement, 7 Brew and its affiliates will not operate or allow another franchisee or licensee to operate another Traditional 7 Brew store within the Area of Protection, which is the geographical area described on Exhibit B. However, this restriction does not apply to Non-Traditional 7 Brew Stores. 7 Brew and its affiliates retain the right to operate Non-Traditional stores within the Area of Protection.
For franchisees who sign a Development Rights Rider, Section 2. (a) of the Rider outlines the grant of development rights. Subject to compliance with the Rider, 7 Brew grants the franchisee the exclusive right to construct, develop, and operate a specified number of traditional 7 Brew Stores within a territory. This territory is defined as locations within a two-mile radius of coordinate locations listed in Exhibit B to the Rider. The franchisee must adhere to the development schedule outlined in Exhibit A of the Rider.
In summary, the 7 Brew franchise agreement and its associated riders define the scope and limitations of a franchisee's territorial rights, distinguishing between Traditional and Non-Traditional stores and outlining specific geographic areas of protection. The Development Rights Rider further specifies the terms for franchisees who commit to developing multiple locations.