What is 7 Brew franchisee required to do with the store's lease after 7 Brew requests it?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) We will not be involved in reviewing, negotiating, approving, or accepting any lease you sign for the Traditional 7 BREW Stores you construct and develop under this Rider. You alone are exclusively responsible for all lease matters. The only requirement we impose upon you is that the site's lease must incorporate the terms of our then-current Lease Rider for Traditional 7 BREW Stores. You must send us a fully-signed copy of each site's lease within ten (10) days after our request.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, a franchisee is required to send 7 Brew a fully-signed copy of the store's lease within ten (10) days after 7 Brew requests it. The franchisee is exclusively responsible for all lease matters, and 7 Brew will not be involved in reviewing, negotiating, approving, or accepting any lease. However, the lease must incorporate the terms of 7 Brew's then-current Lease Rider for Traditional 7 Brew Stores.
This requirement ensures that 7 Brew has a record of the lease terms and can verify that the lease includes the necessary provisions outlined in their Lease Rider. This Lease Rider includes specific stipulations, such as the franchisee using the premises only to operate a 7 Brew store during the franchise agreement term. It also mandates that the landlord send copies of all default notices and termination notices to 7 Brew's legal department.
These lease provisions protect 7 Brew's interests by ensuring the location is used solely for 7 Brew operations and by providing them with early warnings of any potential lease defaults or termination, allowing them to take necessary actions to protect their brand and the franchise system. The lease rider also states that 7 Brew is an intended third-party beneficiary, which means that 7 Brew has independent rights to enforce the lease provisions.
It is important for prospective franchisees to carefully review the Lease Rider and understand its implications before signing a lease. They should also ensure they can comply with the requirement to provide a copy of the signed lease to 7 Brew within ten days of request. Franchisees should consult with a legal professional to fully understand their obligations under the lease and the Lease Rider.