Can 7 Brew franchisees negotiate the terms of their agreement with ure Franchise, LLC?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
ional 7 BREW Store under a separate franchise agreement with us. The franchise agreement (and related documents, including Guaranty and Assumption of Obligations) that you and your owners (or your Approved Affiliate and its owners) must sign for each Traditional 7 BREW Store constructed and developed pursuant to this Rider will be our then-current form of franchise agreement (and related documents, including Guaranty and Assumption of Obligations),
any or all terms of which may differ substantially and materially from any or all terms contained in the First Franchise Agreement, provided, however, that:
- (i) the initial franchise fee will be Twenty-Five Thousand Dollars ($25,000) for the second and each subsequent Traditional 7 BREW Store to be developed pursuant to this Rider; and
- (ii) the terms specified in our then-current form of franchise agreement will be modified for each new Traditional 7 BREW Store to include the same terms that you negotiated with us and that appear in any amendment to the First Franchise Agreement, unless you (and your Approved Affiliates) are not then in substantial compliance (subject to any applicable opportunity to cure) with this Rider, the First Franchise Agreement, and all other franchise agreements then in effect between us and you (and your Approved Affiliates) for 7 BREW Stores. If you (and your Approved Affiliates) are not then in substantial compliance with this Rider, the First Franchise Agreement, and all other franchise agreements then in effect between us and you (and your Approved Affiliates) for 7 BREW Stores, and you fail to cure such failure within any applicable opportunity to cure, then the terms of our then-current form of franchise agreement will not be modified as provided above to include our and your negotiated terms, and the terms of the franchise agreement we require you to sign may differ substantially and materially from any or all terms contained
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to the 2025 7 Brew Franchise Disclosure Document, franchisees may have the opportunity to negotiate the terms of their franchise agreement under specific conditions, particularly when developing subsequent Traditional 7 Brew stores. The initial franchise fee will be $25,000 for the second and each subsequent store. The terms specified in the current franchise agreement form may be modified for each new Traditional 7 Brew store to include the same terms that were negotiated and appear in any amendment to the First Franchise Agreement.
However, this is contingent on the franchisee (and their Approved Affiliates) being in substantial compliance with the Rider, the First Franchise Agreement, and all other franchise agreements in effect between 7 Brew and the franchisee. If the franchisee is not in substantial compliance and fails to rectify the issue within the given opportunity to cure, the terms of the current franchise agreement form will not be modified to include the previously negotiated terms. In such cases, the terms of the franchise agreement that 7 Brew requires the franchisee to sign may differ significantly from the First Franchise Agreement.
Despite any conflicting provisions in newly signed franchise agreements, additional Traditional 7 Brew stores within the Territory must be open and operating by the dates specified in the Schedule. To maintain rights under the Rider, each store opened under this Rider must operate continuously throughout the term in full compliance with its franchise agreement. This clause emphasizes the importance of adhering to the franchise agreement and maintaining operational standards to retain the benefits of any negotiated terms for subsequent franchise agreements.