What is the franchisee's obligation regarding site selection for a 7 Brew store?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
gin operating the Store:
- We will review potential Store sites that you identify within the development territory. You must locate, evaluate, select, and secure the Store's site. We will not search for or select the site for you. (DRR—Section 6(a)) We first must accept each new site you propose for each new 7 BREW Store. Our then-current standards for sites will apply.
We will give you our then-current criteria for Traditional 7 BREW Store sites (including population density and other demographic characteristics, visibility, traffic flow, competition, accessibility, ingress and egress, size, and other physical and commercial characteristics) to help in the site-selection process. We will review potential Traditional 7 BREW Store sites that you identify within the development 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 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. (DRR— Section 6(b))
We will use reasonable efforts to review and accept or reject each site you propose within 30 days after we receive all requested information and materials. If we do not accept the site in writing within 30 days, the site is deemed rejected. We will not unreasonably withhold our 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 prefer is accepted but not recommended due to its incompatibility with certain factors bearing on a site's suitability as a location for a Traditional 7 BREW Store. After we accept and you secure a proposed site, we will identify that site as the Store's address in the Franchise Agreement. (DRR—Section 6(b)) We do not own locations for lease to franchisees.
If we accept a proposed site but you (or your Approved Affiliate) have not yet signed a franchise agreement for that 7 BREW Store, the DRR requires you—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. Nevertheless, we might allow you to sign the Franchise Agreement later at or closer to the Store's opening—if you are diligently working on the Store's development.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 34–45)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, franchisees are responsible for locating, evaluating, selecting, and securing the site for their 7 Brew store. 7 Brew will not search for or select the site for the franchisee. The franchisee must have 7 Brew accept each new site proposed for a new store, and the franchisor's then-current standards for sites will apply. These standards include criteria for Traditional 7 Brew Store sites, such as population density, demographic characteristics, visibility, traffic flow, competition, accessibility, ingress and egress, size, and other physical and commercial characteristics.
7 Brew will review potential store sites identified by the franchisee within the development territory. While 7 Brew will provide its criteria for site selection, it is not obligated to physically inspect the proposed sites unless the franchisee first sends complete site reports and other requested materials, including photographs and digital recordings. The franchisee is responsible for providing all information and materials requested by 7 Brew to assess each proposed site. If the franchisee cannot secure an acceptable site and meet the opening deadlines outlined in the Development Rights Rider (DRR), 7 Brew has the right to terminate the DRR.
Furthermore, 7 Brew will not be involved in reviewing, negotiating, approving, or accepting any lease signed for the 7 Brew stores developed under the DRR; the franchisee is exclusively responsible for all lease matters. The only requirement 7 Brew imposes is that the site's lease must incorporate the terms of their then-current Lease Rider, which is attached to the Franchise Agreement. The franchisee must send 7 Brew a fully signed copy of each store's lease within 10 days of their request. If a proposed site is accepted but a franchise agreement has not been signed, the franchisee must sign a franchise agreement concurrently with signing the lease for the site. 7 Brew retains the right to withdraw acceptance of a proposed site if the franchisee cannot obtain lawful possession within the designated time period or fails to sign the Franchise Agreement when required.