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 data security (Item 8)?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
right to terminate the DRR.
-
- 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))
-
- 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.
-
- 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)
-
- 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.
-
- 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)
-
- We will give you access to our operations and technical manuals, bulletins, and other materials (collectively, the "Operations Manual").
What This Means (2025 FDD)
According to the 2025 FDD, 7 Brew franchisees are responsible for securing their own store locations and complying with data security measures. 7 Brew will not be involved in reviewing, negotiating, approving, or accepting any lease signed by the franchisee for their store. The franchisee is solely responsible for all lease matters, with the only requirement being that the site's lease must incorporate the terms of 7 Brew's then-current Lease Rider. The franchisee must send 7 Brew a fully-signed copy of each store's lease within 10 days after their request. Additionally, 7 Brew makes template plans available, but the franchisee is responsible for ensuring that their adapted plans comply with all laws and lease requirements. 7 Brew has the right to pre-approve the architect and the adapted plans before construction begins. During construction, 7 Brew can inspect the store to ensure compliance with brand standards.
Regarding data security, 7 Brew requires franchisees to comply with reasonable instructions to safeguard the confidentiality and security of customer data, including names, addresses, and credit card information. Franchisees must employ reasonable means to protect this data and comply with all laws governing its use, protection, and disclosure. If a data security incident occurs at the store, the franchisee must immediately notify 7 Brew, specify the extent of the data compromise, and cooperate with 7 Brew's instructions to address the incident and protect the 7 Brew brand. 7 Brew has the right, but not the obligation, to take action regarding the data security incident.
In essence, the franchisee bears the responsibility for both securing the physical location and protecting customer data. While 7 Brew provides some assistance with store design and imposes certain brand standards, the franchisee is ultimately accountable for legal compliance and data security. This division of responsibility means franchisees must be diligent in their pre-opening preparations and ongoing data protection practices to avoid potential legal or financial repercussions.