What must 7 Brew franchisees sign for each additional store they develop?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisees must sign our then-current form of Franchise Agreement for each additional 7 BREW Store they develop under the DRR. While that form may differ substantially and materially year to year from the first Franchise Agreement they sign for their first 7 BREW Store to be developed (our current version of Franchise Agreement is disclosed in this disclosure document), the initial franchise fee will not change for the 2nd and each subsequent 7 BREW Store you commit to develop under the DRR. In addition, we will modify our then-current form of franchise agreement for each new 7 BREW Store to include the same terms that you negotiated with us and that appear in any amendment to your first Franchise Agreement, unless you (and your Approved Affiliates) are not then in substantial compliance (subject to any applicable cure opportunity) with the DRR, the first Franchise Agreement, and all other franchise agreements then in effect. If you (and your Approved Affiliates) are not then in substantial compliance with the DRR, the first Franchise Agreement, and all other franchise agreements then in effect and 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 the terms we previously negotiated with you.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–12)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, franchisees must sign the then-current form of the Franchise Agreement for each additional 7 Brew store they develop under the Development Rights Rider (DRR). The franchise agreement form may differ substantially from the initial agreement signed for the first store. However, the initial franchise fee will not change for the second and subsequent stores developed under the DRR.
7 Brew will modify the then-current form of the franchise agreement for each new store to include the same terms that were negotiated and appear in any amendment to the first Franchise Agreement. This is provided that the franchisee (and their Approved Affiliates) are in substantial compliance with the DRR, the first Franchise Agreement, and all other franchise agreements then in effect, subject to any applicable cure opportunity.
However, if the franchisee (and their Approved Affiliates) are not in substantial compliance with the DRR, the first Franchise Agreement, and all other franchise agreements then in effect, and fail to cure such failure within any applicable opportunity to cure, then the terms of the then-current form of franchise agreement will not be modified to include the terms previously negotiated. This means that any negotiated terms from the original agreement may not carry over to subsequent franchise agreements if the franchisee is not in good standing.