Can a 7 Brew franchisee operate a store at a site that has not been accepted by 7 Brew?
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
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 have 7 Brew's acceptance of a specific location before operating a store there. The FDD clarifies that 7 Brew does not "approve" sites but rather "accepts" them based on whether they align with characteristics of favorable or successful past locations. The franchisee is explicitly prohibited from operating a 7 Brew store at any site that has not been accepted by the company.
This requirement ensures that all 7 Brew locations meet the brand's standards and have a reasonable chance of success, protecting both the franchisee's investment and the overall brand reputation. The franchisee bears the responsibility of finding and securing a site that 7 Brew will accept, following procedures outlined in the Development Rights Rider (DRR). This process involves submitting the proposed site to 7 Brew for their consideration and written acceptance.
Furthermore, the franchisee cannot relocate a 7 Brew store without prior written consent from the company. Obtaining approval for relocation involves several conditions, including the new site being acceptable to 7 Brew, payment of a $5,000 relocation fee, and reimbursement of any costs incurred by 7 Brew during the relocation process. The franchisee must also confirm that the original Franchise Agreement remains in effect, sign a general release of claims against 7 Brew, continue operating at the original site until authorized to close, and de-brand the former premises so it is no longer associated with the 7 Brew system.