If 7 Brew breaches the Franchise Agreement, does the franchisee have to provide notice before terminating?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise or other agreement | Summary |
|---|---|---|
| d. Termination by franchisee | 18.A of Franchise | If we breach Franchise Agreement and do not |
| Agreement | ||
| 4(a) of Manufacturing | ||
| Agreement | ||
| cure default within applicable cure period | ||
| after notice from you, or if your Store does | ||
| not reach a certain EBITDA level; otherwise, | ||
| you may not terminate without cause, subject | ||
| to state law. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 54–61)
What This Means (2025 FDD)
According to the 2025 7 Brew Franchise Disclosure Document, a franchisee must provide notice and allow a cure period if 7 Brew breaches the Franchise Agreement before the franchisee can terminate the agreement. Specifically, if 7 Brew breaches the Franchise Agreement and does not cure the default within the applicable cure period after receiving notice from the franchisee, the franchisee has grounds for termination, subject to state law.
This stipulation means a 7 Brew franchisee cannot immediately terminate the agreement upon discovering a breach by 7 Brew. Instead, they must first formally notify 7 Brew of the breach and provide them with a reasonable opportunity to correct the issue. The 'applicable cure period' is not defined in this section, so the franchisee should refer to the specific terms outlined elsewhere in the Franchise Agreement or Manufacturing Agreement to determine the exact timeframe 7 Brew has to remedy the breach.
This requirement is a standard practice in franchising, designed to give the franchisor a chance to rectify any issues and maintain the franchise relationship. However, it also means the franchisee must continue operating under the terms of the agreement during the cure period, even while the breach exists. If 7 Brew fails to cure the breach within the specified time, the franchisee can then proceed with termination, subject to any applicable state laws that may govern franchise agreements.