What are the 7 Brew franchisee's obligations regarding pre-opening purchases/leases (Item 9) and how do these relate to the franchisor's requirements for employee training (Item 8)?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
right to terminate the DRR.
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- 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 the DRR. 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 (attached to the Franchise Agreement) for Traditional 7 BREW Stores. You must send us a fully-signed copy of each Store's lease within 10 days after our request. (DRR—Section 6(d))
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- We will make template Plans available to you. Our Plans might not reflect the requirements of any federal, state, or local laws, codes, ordinances, or regulations,
including those arising under the ADA, or any lease requirements or restrictions. You are solely responsible for complying with all laws and must inform us of any changes to the Store's specifications that you believe are necessary to ensure such compliance.
You must ensure that your Adapted Plans for the Store comply with all laws and lease requirements and restrictions. We have the right to pre-approve the architect you propose to use to develop the Store. We must pre-approve in writing the Adapted Plans before the Store's build-out begins and all revised or "as built" plans prepared during the Store's construction and development. You must develop the Store in compliance with the Adapted Plans. During the Store's build-out, we have the right physically to inspect the Store or have you send us pictures and images (including recordings) of the Store's interior and exterior so we can review your development of the Store in compliance with our Brand Standards. (Franchise Agreement—Section 4.C)
Except as provided above, we do not assist you in conforming the premises to local ordinances and building codes, obtaining required permits, or constructing, remodeling, or decorating the premises.
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- We will provide initial training for your Managing Owner, Store managers, and other employees. We describe this training later in this Item. (Franchise Agreement – Section 6.A)
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- We will identify in writing or electronically the Operating Assets, inventory, supplies, and other products and services you must use to develop and operate the Store, the minimum standards and specifications you must satisfy, and the designated and approved suppliers from which you must or may buy or lease items and services (which may include or be limited to us and/or our affiliates). (Franchise Agreement Sections 4.C, 6.F, 7.D, and 7.E) One of our affiliates is an approved supplier of the Store's modular building and other items and the designated supplier of coffee equipment packages. Otherwise, we and our affiliates currently are not involved in delivering or installing fixtures, equipment, or signs, although we will provide direction for you to comply with our Brand Standards.
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- At our option, we will send an "opening team" to support the Store during its opening phase and to help train your supervisory employees on our philosophy and Brand Standards (but not matters relating to labor relations and employment practices). (Franchise Agreement – Section 6.C)
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- We will give you access to our operations and technical manuals, bulletins, and other materials (collectively, the "Operations Manual"). The Operations Manual may consist of and is defined to include audio, video, computer software, other electronic and digital media, and/or written and other tangible materials. The Operations Manual contains Brand Standards and information on your other obligations under the Franchise Agreement. We have the right to modify the Operations Manual periodically to reflect changes in Brand Standards, but those modifications will not alter your fundamental rights or status under the Franchise Agreement. If there is a dispute over the Operations Manual's contents, our master version controls. The Operations Manual currently contains the
equivalent of approximately 48 total pages; its current table of contents is Exhibit E. (Franchise Agreement Section 6.F)
- We will designate a specific number of Stores that you (and your Approved Affiliates) must develop and open at accepted locations within your development territory (but no less than 5) and the development deadlines.
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, 7 Brew franchisees have several obligations regarding pre-opening purchases and leases. The franchisee is solely responsible for all lease matters, and 7 Brew will not be involved in reviewing, negotiating, approving, or accepting any lease. However, the site's lease must incorporate the terms of 7 Brew's then-current Lease Rider for Traditional 7 Brew Stores, and a fully-signed copy of each store's lease must be sent to 7 Brew within 10 days after their request. Franchisees are also responsible for ensuring that their Adapted Plans for the store comply with all laws and lease requirements and restrictions. 7 Brew has the right to pre-approve the architect and must pre-approve the Adapted Plans in writing before the store's build-out begins. During the store's build-out, 7 Brew has the right to physically inspect the store to ensure compliance with Brand Standards. Except as provided above, 7 Brew does not assist franchisees in conforming the premises to local ordinances and building codes, obtaining required permits, or constructing, remodeling, or decorating the premises.
Regarding employee training, 7 Brew has the right to delay the store's opening until all required training has been satisfactorily completed. If a store manager fails to complete Initial Training to 7 Brew's satisfaction, or if retraining is necessary because the store is not operating according to Brand Standards, 7 Brew will offer a retraining session, but the franchisee must pay all employee compensation and expenses during retraining. 7 Brew has the right to terminate the Franchise Agreement if the franchisee fails to open the store for business with a fully-trained staff by the opening deadline.
While the franchisee is responsible for the employment terms and conditions of all store employees, 7 Brew may advise or make recommendations regarding supervisory-employee training methods and procedures. 7 Brew also has the right, but no obligation, to send an "opening team" to support the store during its opening phase and to help train supervisory employees on their philosophy and Brand Standards (but not matters relating to labor relations and employment practices). The Brand Fund currently will pay the wages and travel-related expenses of any opening team 7 Brew chooses to send. However, if special guidance, assistance, or training is needed or requested (excluding training relating to labor relations and employment practices) that is in addition to any support 7 Brew chooses to provide, the franchisee must pay 7 Brew's personnel's daily charges (including wages) and travel, hotel, and living expenses.
In summary, the franchisee bears the responsibility for securing and managing the store location and ensuring its compliance with all applicable laws and 7 Brew's standards. Simultaneously, the franchisee must ensure that all staff members, particularly managers, receive adequate training, either through 7 Brew's programs or at the franchisee's own expense if additional training is required. This division of responsibilities highlights the importance of the franchisee's role in both the physical setup and the operational readiness of the 7 Brew store.