What happens after the franchise agreement and related documents are signed for a 7 Brew store?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
its incompatibility with certain factors bearing on a site's suitability as a location for a Traditional 7 BREW Store. We agree to use reasonable efforts to review and accept (or not to accept) each site you propose within thirty (30) days after we receive all requested information and materials. If we do not accept the site in writing within thirty
(30) days, the site will be deemed rejected. You may not proceed with a site that we have not accepted.
- (c) If we accept the proposed site but you (or your Approved Affiliate) have not yet signed a franchise agreement for that Traditional 7 BREW Store, you agree—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. If you (or your Approved Affiliate) fail to do so, or cannot obtain lawful possession of the acceptable proposed site within the time period we designate, we may withdraw our acceptance of the proposed site and exercise any of our other rights under this Rider. 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 Traditional 7 BREW Store (except that the required opening date is governed exclusively by the Schedule in this Rider, as provided in Section 3 above).
- (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.
- (e) In addition to our rights with respect to proposed Traditional 7 BREW Store sites, we have the right to delay your development and/or opening of additional Traditional 7 BREW Stores within the Territory for the time period we deem best if we believe in our sole judgment, when you submit your application for another Traditional 7 BREW Store or after you (or your Approved Affiliate) have developed and constructed but not yet opened a particular Store, that you (or your Approved Affiliate) are not yet operationally, managerially, or otherwise prepared (no matter the reason) to develop, open, and/or operate the additional Traditional 7 BREW Store in full compliance with our standards and specifications. We have the right to delay additional development and/or a Traditional 7 BREW Store's opening for the time period we deem best as long as the delay will not in our reasonable opinion cause you to breach your development obligations under the Schedule (unless we are willing to extend the Schedule proportionately to account for the delay).
Furthermore, if we delay your (or your Approved Affiliate's) progress in satisfying your development obligations under the Schedule due to our failure to accept a proposed Traditional 7 BREW Store site (which is acceptable based on the criteria described above) in accordance with this Section 6, you provide written notice to us and give us at least ten (10) days to cure such delay, but we fail to cure such delay within that ten (10)-day period, then we agree that you have the right following the delay to adjust the Schedule unilaterally to add the number of days we delayed your progress to the opening deadline for each additional Traditional 7 BREW Store to be constructed and developed by you (or your Approved Affiliate) under the Schedule. (In other words, if we delayed your progress by sixty (60) days after you provided us written notice and an opportunity to cure (having failed to cure the delay within ten (10) days), you have the right unilaterally to add
sixty (60) days to each date in the Schedule that occurs after our failure to cure our delay, and such updated dates will serve as the "Schedule" afterward.)
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- Term. This Rider's term begins on the date we sign it and ends on the date when (a) you (or your Approved Affiliate) open for business the final Traditional 7 BREW Store to be developed under the Schedule, or (b) this Rider otherwise is terminated, but in any event this Rider's term will end no later than [Insert Last Date on Schedule], subject to extensions permitted by Section 6(e) of this Rider.
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- Termination. We have the right at any time to terminate this Rider and your rights under this Rider to construct and develop Traditional 7 BREW Stores within the Territory, such termination to be effective upon our delivery to you of written notice of termination:
- (a) if you fail to satisfy any development obligation under the Schedule and do not cure such failure within ninety (90) days after receiving written notice from us;
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, after you and your owners (or your Approved Affiliate and its owners) sign the franchise agreement and related documents, including the Guaranty and Assumption of Obligations, the terms and conditions outlined in those documents will govern the construction, development, and operation of the Traditional 7 Brew Store. However, the required opening date is exclusively determined by the Schedule in the Rider.
If you are developing multiple 7 Brew stores under a development schedule, the franchise agreement that you sign for each Traditional 7 Brew Store will be the then-current form of the franchise agreement and related documents. The terms may differ substantially from those in the initial franchise agreement. However, the initial franchise fee for the second and each subsequent store will be $25,000. The terms specified in the current franchise agreement will be modified to include the same terms that you negotiated initially, unless you are not in substantial compliance with the Rider, the First Franchise Agreement, and all other franchise agreements in effect between you and 7 Brew.
It's important to note that 7 Brew will not be involved in reviewing, negotiating, approving, or accepting any lease you sign for the Traditional 7 Brew Stores. You are solely responsible for all lease matters, but the site's lease must incorporate the terms of 7 Brew's then-current Lease Rider for Traditional 7 Brew Stores. You must also send 7 Brew a fully-signed copy of each site's lease within ten days of their request. 7 Brew also retains the right to delay the development or opening of additional stores if they believe you are not prepared to operate them in compliance with their standards.