What is the franchisee's responsibility regarding the lease for Traditional 7 Brew Stores?
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, the franchisee is exclusively responsible for all lease matters related to Traditional 7 Brew Stores. 7 Brew will not be involved in reviewing, negotiating, approving, or accepting any lease the franchisee signs. However, the lease must incorporate the terms of 7 Brew's then-current Lease Rider for Traditional 7 Brew Stores. The franchisee must send 7 Brew a fully-signed copy of each site's lease within ten days after their request.
This means that while 7 Brew maintains some control by requiring specific terms in the lease rider, the franchisee bears the primary responsibility for finding a suitable location and negotiating lease terms that are financially viable. The franchisee also carries the risk of ensuring the lease complies with 7 Brew's requirements. Failing to incorporate the required lease rider or provide a copy of the signed lease could result in penalties or a breach of the franchise agreement.
This arrangement is fairly typical in the franchise industry, where franchisees usually handle local real estate matters while franchisors set brand standards and approve sites. Prospective 7 Brew franchisees should carefully review the Lease Rider and understand its implications before signing any lease. They should also consult with legal and real estate professionals to ensure they negotiate favorable lease terms and comply with all applicable laws and regulations.