Must a 7 Brew franchisee designate a Managing Owner?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
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You must designate one of your individual owners to serve as your "Managing Owner." We must pre-approve the proposed Managing Owner or any replacement Managing Owner. The Managing Owner will communicate with us directly regarding Store-related matters and must have sufficient authority to make business decisions for you and the Store. The Managing Owner's decisions will be final and will bind you. While we recommend that the Managing Owner attend certain portions of Initial Training, the Managing Owner is not required to do so.
The Store must have at least 2 fully-trained on-site managers. A Store manager need not have an equity interest in you or the Store. Store managers and your officers and directors must sign confidentiality and other agreements (including non-compete agreements) we specify or preapprove (if applicable law allows).
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 52–53)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, if you are a franchisee, you must designate one of your individual owners to serve as the Managing Owner. 7 Brew must pre-approve the proposed Managing Owner or any replacement.
The Managing Owner will be the direct point of contact with 7 Brew regarding store-related matters and must have sufficient authority to make business decisions for the franchise. These decisions made by the Managing Owner will be final and binding for the franchisee.
While 7 Brew recommends that the Managing Owner attend certain portions of the initial training, it is not mandatory. Additionally, if the franchisee proposes to change the Managing Owner, they must appoint a Replacement Managing Owner within 30 days after the former Managing Owner's last day. 7 Brew also recommends that the Replacement Managing Owner attend certain portions of Initial Training, but this is not required.