If 7 Brew acquires a business that operates Competitive Businesses, can 7 Brew continue to operate those businesses within a 7 Brew franchisee's Area of Protection?

According to the 2025 7 Brew Franchise Disclosure Document, 7 Brew has the right to acquire businesses, even those considered "Competitive Businesses," and continue their operation, even within a franchisee's Area of Protection. This means that 7 Brew could purchase a coffee shop chain or similar business that competes with existing 7 Brew locations.

Specifically, 7 Brew reserves the right to acquire the assets or ownership interests of businesses that offer products and services similar to those sold at 7 Brew stores. This includes businesses that operate, franchise, or license Competitive Businesses, including food trucks. After acquiring such a business, 7 Brew can operate, franchise, license, or create similar arrangements for those businesses, regardless of their location, even within a franchisee's Area of Protection.

This clause has significant implications for prospective franchisees. Even with an Area of Protection, a franchisee could face competition from a business acquired and operated by 7 Brew itself. The definition of "Competitive Business" includes any business deriving more than 25% of its revenue from selling coffee or franchising such businesses. This broad definition means a wide range of coffee shops and related businesses could fall under this clause. Franchisees should carefully consider this potential for direct competition from 7 Brew when evaluating the franchise opportunity.