What geographic elements define the Territory in the 7 Brew Development Rights Rider?

According to 7 Brew's 2025 Franchise Disclosure Document, the Territory granted under the Development Rights Rider (DRR) is defined by specific geographic coordinate points, including latitude and longitude. Each coordinate point is surrounded by a radius of either 1.5 miles or 2 miles. These points are located within a city, cities, counties, or zip codes. The exact coordinate points are detailed in an exhibit to the DRR, which is completed before the franchisee and 7 Brew sign the agreement. The number of coordinate points within the Territory depends on factors such as the number of 7 Brew stores the franchisee agrees to develop, demographics, competitive businesses, and site availability.

This means that a prospective 7 Brew franchisee's territory is not a simple, contiguous area but rather a collection of specific points with defined radii. The size and scope of the territory are subject to negotiation and depend on several market factors. The franchisee has the exclusive right to develop and operate Traditional 7 Brew stores within this Territory. However, it's important to note that 7 Brew retains the right to operate Non-Traditional 7 Brew stores within the same Territory, meaning the franchisee does not receive an exclusive territory overall.

This arrangement carries both benefits and risks. The defined geographic points provide clarity on where the franchisee can develop stores, but the lack of exclusivity, due to 7 Brew's right to establish Non-Traditional stores, introduces potential competition within the Territory. The franchisee's ability to secure favorable sites and meet development deadlines is crucial for maintaining their development rights. Prospective franchisees should carefully review the DRR exhibit to understand the specific geographic points and radii that define their Territory and assess the potential for competition from both Traditional and Non-Traditional 7 Brew stores.