Does the 7 Brew Franchise Agreement outline any continuing obligations of the franchisee after termination or expiration, and if so, on what page can I find this information?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
C. Confidential Information
Upon termination or expiration of this Agreement, you and your owners must immediately cease using any of our Confidential Information in any business or otherwise and return to us all copies of the Operations Manual and any other confidential materials to which we gave you access. You may not sell, trade, or otherwise profit in any way from any Consumer Data or other Confidential Information at any time after expiration or termination of this Agreement.
D. Notification to Customers
Upon termination or expiration of this Agreement, we have the right to contact (at our expense) previous, current, and prospective customers to inform them that a 7 BREW Store no longer will operate at the Store's location. We also have the right to inform them of other nearby 7 BREW Stores. Exercising these rights will not constitute interference with your contractual or business relationships with those customers.
E. Covenant Not to Compete
Upon our termination of this Agreement in compliance with its terms, your termination of this Agreement without cause, or expiration of this Agreement (without the grant of a successor franchise), you and your owners agree that neither you, they, nor any member of your or their Immediate Families will:
- (1) have any direct or indirect, controlling or non-controlling interest as an owner whether of record, beneficial, or otherwise—in any Competitive Business located or operating:
- a. at the Store's site; or
- b. within three (3) miles of the former Store site; or
- c. within three (3) miles of the physical location of another 7 BREW Store in operation or under construction on the later of the effective date of termination or expiration or the date on which the restricted person begins to comply with this Section 19.E,
provided that this restriction does not prohibit ownership of shares of a class of securities publicly-traded on a United States stock exchange and representing less than three percent (3%) of the number of shares of that class of securities issued and outstanding; or
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the Franchise Agreement specifies several obligations that continue after the termination or expiration of the agreement. These obligations are detailed in Section 19 of the agreement.
One key obligation is related to confidential information. Upon termination or expiration, the franchisee and their owners must immediately stop using any of 7 Brew's confidential information and return all copies of the Operations Manual and other confidential materials. Furthermore, franchisees are prohibited from selling, trading, or profiting from consumer data or other confidential information after the agreement ends.
Another significant obligation is a covenant not to compete. If the agreement is terminated by 7 Brew in compliance with its terms, or by the franchisee without cause, or upon expiration without a successor franchise being granted, the franchisee and their owners are restricted from having any direct or indirect interest in a Competitive Business. This restriction applies to businesses located at the Store's site, within three miles of the former Store site, or within three miles of another operating or under-construction 7 Brew store. This non-compete clause does not prevent ownership of less than three percent of shares in a publicly-traded company.
Additionally, 7 Brew retains the right to notify customers about the change in operation. Upon termination or expiration, 7 Brew can contact previous, current, and prospective customers to inform them that a 7 Brew store will no longer operate at the location and to direct them to other nearby 7 Brew locations. This action will not be considered interference with the franchisee's contractual or business relationships.