Must a 7 Brew franchisee obtain written acceptance of a site?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
ITORY**
Franchise Agreement
You will operate each 7 BREW Store at a specific location that we first must accept. You must find, obtain our written acceptance of, and secure a site for each Store following the procedures specified in the DRR (described in Item 11). (We do not "approve" sites; we "accept" them under the circumstances described in Item 11. When we "accept" a site, that means only that we believe the site is not inconsistent with sites that we regard as favorable, or that otherwise have been successful sites in the past, for 7 BREW Stores. "Accept" is different from "approve," which in this context might be interpreted to mean that we subjectively determined that the particular site is a good site.) You may operate the Store only at that site. You may not relocate the Store without our prior written consent, which we have the right to grant or deny as we deem best. Whether or not we will allow relocation depends on circumstances at the time and what is in the Store's and our system's best interests. Factors include, for example, the new site's market area, its proximity to other Stores in our system, whether you are complying with your Franchise Agreement, and how long it will take you to open at the new site.
Conditions for relocation approval are (1) the new site is acceptable to us, (2) you pay us a $5,000 relocation fee, (3) you reimburse any costs we incur during the relocation process, (4) you confirm that your original Franchise Agreement remains in effect and governs the Store's operation at the new site with no change in the franchise term, (5) you sign a general release, in a form satisfactory to us, of any and all claims against us and our owners, affiliates, officers, directors, employees, and agents, (6) you continue operating the Store at its original site until we authorize its closure, and (7) you de-brand and de-identify the Store's former premises within the timeframe we specify and at your own expense so it no longer is associated in any manner (in our opinion) with our system and the Marks.
Source: Item 12 — TERRITORY (FDD pages 45–49)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, a franchisee must obtain written acceptance of a site. Specifically, the franchisee is responsible for finding and securing a site for each 7 Brew store, and 7 Brew must provide written acceptance of that site. The FDD clarifies that 7 Brew does not "approve" sites, but rather "accepts" them if they are consistent with favorable or successful locations. This acceptance means 7 Brew believes the site aligns with characteristics of past successful locations.
This acceptance process is further detailed in the Development Rights Rider (DRR), which applies to franchisees who agree to develop multiple 7 Brew stores within a specific territory. Under the DRR, 7 Brew must accept each proposed site for a new store, and the company's current site standards will be applied. Failure to meet development obligations, including securing acceptable sites, can lead to termination of the DRR.
Furthermore, if 7 Brew delays the franchisee's progress by failing to timely accept a proposed site, and the franchisee provides written notice with at least 10 days to cure the delay, the franchisee can adjust the development schedule to account for the delay. This adjustment involves adding the number of days 7 Brew delayed the progress to the opening deadline for each additional store to be developed under the development schedule. This provision protects the franchisee from being penalized for delays caused by 7 Brew's site acceptance process.