What must a 7 Brew franchisee do to find and secure a site for the store?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
Development Fee is:
- (i) consideration for the rights we grant 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. We agree to use reasonable efforts to review and accept (or not to accept) each site you propose within thirty (30) days after we receive all requested information and materials. If we do not accept the site in writing within thirty
(30) days, the site will be deemed rejected. You may not proceed with a site that we have not accepted.
- (c) If we accept the proposed site but you (or your Approved Affiliate) have not yet signed a franchise agreement for that Traditional 7 BREW Store, you agree—concurrently with signing the lease for or otherwise securing the right to possess the site—to sign (or have your Approved Affiliate sign) a separate franchise agreement (and related documents) for that Store.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to the 2025 FDD, a 7 Brew franchisee is responsible for locating, evaluating, and securing a site for their store. 7 Brew does not search for or select the site for the franchisee. In granting development rights, 7 Brew relies on the franchisee's knowledge of the real estate market in their territory and their ability to locate and access suitable sites. The franchisee must send 7 Brew a separate application for each Traditional 7 Brew Store they wish to develop.
7 Brew will provide its then-current criteria for Traditional 7 Brew Store sites to help franchisees select and identify potential locations. These criteria include factors such as population density, demographic characteristics, visibility, traffic flow, competition, accessibility, size, and other physical and commercial characteristics. 7 Brew will review potential sites identified by the franchisee but is not obligated to physically inspect the sites in the territory. 7 Brew has the right to require complete site reports and other materials, including photographs and digital recordings, before accepting a proposed site or conducting a site visit. The franchisee must provide all requested information and materials to allow 7 Brew to assess each proposed site.
If 7 Brew accepts a proposed site, and the franchisee has not yet signed a franchise agreement, the franchisee must sign a separate franchise agreement concurrently with signing the lease or otherwise securing the right to possess the site. Failure to do so may result in 7 Brew withdrawing its acceptance of the site. 7 Brew will not be involved in reviewing, negotiating, approving, or accepting any lease the franchisee signs. The franchisee is solely responsible for all lease matters, but the lease must incorporate the terms of 7 Brew's then-current Lease Rider for Traditional 7 Brew Stores. The franchisee must send 7 Brew a fully signed copy of each site's lease within ten days of request. If 7 Brew does not notify the franchisee of acceptance or rejection of a site within thirty days, the site will be deemed rejected, and the franchisee may not proceed with a site that 7 Brew has not accepted.