What happens after 7 Brew accepts and the franchisee secures a proposed site?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
After we accept and you secure a proposed site, we will identify that site as the Store's address in the Franchise Agreement. (DRR—Section 6(b)) We do not own locations for lease to franchisees.
If we accept a proposed site but you (or your Approved Affiliate) have not yet signed a franchise agreement for that 7 BREW Store, the DRR requires you—concurrently with signing the lease for or otherwise securing the right to possess the site—to sign (or have your Approved Affiliate sign) a separate franchise agreement (and related documents) for that Store. Nevertheless, we might allow you to sign the Franchise Agreement later at or closer to the Store's opening—if you are diligently working on the Store's development. If you (or your Approved Affiliate) cannot obtain lawful possession of the acceptable proposed site within the time period we designate, we have the right to withdraw our acceptance of the proposed site (we have that same right if you fail to sign the Franchise Agreement when required). After you and your owners (or your Approved Affiliate and its owners) sign the franchise agreement (and related documents, including Guaranty and Assumption of Obligations), its terms and conditions will control the construction, development, and operation of the 7 BREW Store (except that the required opening date is governed exclusively by the DRR's development schedule). (DRR—Section 6(c))
If you do not find and secure acceptable Store sites so that you can open the required Stores by the opening deadlines in the DRR, we have the 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))
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 34–45)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, after 7 Brew accepts a proposed site and the franchisee secures it, 7 Brew will identify the site as the store's address in the Franchise Agreement. If a franchise agreement has not yet been signed, the franchisee must sign a franchise agreement concurrently with signing the lease or otherwise securing the right to possess the site. However, 7 Brew might allow the franchisee to sign the Franchise Agreement later, closer to the store's opening, if the franchisee is diligently working on the store's development.
If the franchisee cannot obtain lawful possession of the acceptable proposed site within the time period 7 Brew designates, 7 Brew has the right to withdraw its acceptance of the proposed site. 7 Brew has the same right if the franchisee fails to sign the Franchise Agreement when required. After the franchisee and their owners sign the franchise agreement and related documents, its terms and conditions will control the construction, development, and operation of the 7 Brew store, except that the required opening date is governed exclusively by the DRR's development schedule.
If the franchisee does not find and secure acceptable store sites so that they can open the required stores by the opening deadlines in the DRR, 7 Brew has the right to terminate the DRR. The franchisee is exclusively responsible for all lease matters. The only requirement 7 Brew imposes is that the site's lease must incorporate the terms of 7 Brew's then-current Lease Rider, which is attached to the Franchise Agreement. The franchisee must send 7 Brew a fully-signed copy of each store's lease within 10 days after 7 Brew's request.