What happens if I do not satisfy my 7 Brew development obligations by the deadlines?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
inesses, and site availability.
We and you will determine the number of Stores you must develop, and the deadlines for development, to keep your development rights. We and you then will complete the schedule in the DRR before signing it. Under the DRR, we first must accept each new site you propose for each new 7 BREW Store. Our then-current standards for sites will apply. We have the right to terminate
the DRR if you do not satisfy your development obligations by the development deadlines (and fail to cure the default).
You alone will have the right to construct, develop, and operate Traditional 7 BREW Stores within the Territory. You will have no right under the DRR to construct, develop, and operate Non-Traditional 7 BREW Stores (although, as noted in Item 1, we often give franchisees a right-offirst-refusal for Non-Traditional 7 BREW Stores if they ask for it). Only Traditional 7 BREW Stores count toward your compliance with the development schedule. You may not develop or operate 7 BREW Stores (Traditional or Non-Traditional) outside the Territory.
Source: Item 12 — TERRITORY (FDD pages 45–49)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, franchisees who enter into a Development Rights Rider (DRR) commit to constructing, developing, and operating at least five Traditional 7 Brew stores within a defined territory. The development schedule, including deadlines, is determined collaboratively between 7 Brew and the franchisee and is documented in an exhibit to the DRR. These deadlines are critical for maintaining the franchisee's development rights.
7 Brew retains the right to terminate the DRR if a franchisee fails to meet the agreed-upon development deadlines and does not rectify the default. However, there is an exception: if 7 Brew delays the franchisee's progress by failing to timely accept a proposed store site, and the franchisee provides written notice with at least 10 days to cure the delay, the franchisee can adjust the development schedule to account for the number of days delayed. This adjustment extends the opening deadline for each subsequent 7 Brew store under the development schedule.
Prospective franchisees should carefully consider the development schedule and their ability to meet the deadlines. Failure to do so can result in the termination of the DRR and the loss of development rights within the territory. It is also important to note the conditions under which the development schedule can be adjusted due to delays caused by 7 Brew, ensuring that these conditions are clearly understood and documented in the DRR.