conditional

If 7 Brew delays development, will the development schedule be extended?

7_Brew Franchise · 2025 FDD

Answer from 2025 FDD Document

dule to account for the delay).

Furthermore, if we delay your (or your Approved Affiliate's) progress in satisfying your development obligations under the development schedule due to our failure to timely accept a proposed Store site (which is acceptable based on the criteria described above), you provide written notice to us and give us at least 10 days to cure such delay, but we fail to cure such delay within that 10-day period, then we agree that you may unilaterally adjust the development schedule to add the number of days we delayed your progress to the opening deadline for each additional 7 BREW Store to be developed by you (or your Approved Affiliate) under the development schedule following such delay.

Except as described above, continuation of your territorial rights does not depend on your

achieving a certain sales volume, market penetration, or other contingency. We do not have the right to alter your Territory during the DRR's term.

Item 13 TRADEMARKS

You may use certain Marks in operating the Store. Brew Culture, LLC (our parent company) owns the trademark registrations for the following principal Marks on the Principal Register of the United States Patent and Trademark Office (the "USPTO"):

| MARK | REGISTRATION NUMBER | REGISTRATION DATE | |---|---|---| | 7 BREW | 6,337,493 | | | 7 BREW | 6,463,637 | | | | 6,506,396 | 10/05/2021 | | | 6,506,397 | 10/05/2021 | | | 6,506,398 | 10/05/2021 | | | 6,506,400 | 10/05/2021 | | | 7,299,548 | 02/06/2024 | | | 6,628,733 | 01/25/2022 | | SEVEN BREW | 7,299,547 | 02/06/2024 | | | 7,213,356 | 11/07/2023 | | BLONDIE | 7,213,343 | 11/07/2023 |

Brew Culture, LLC intends to file all required affidavits when due and to renew all trademark registrations for the Marks that remain important to the 7 BREW brand.

Brew Culture, LLC licenses us to use these Marks and related intellectual property, and to authorize franchisees to use them in operating 7 BREW Stores, under a Trademarks, Copyrights, and Trade Secret License Agreement effective March 15, 2021 (the "License Agreement"). The License Agreement's initial term is 20 years; we have the right to renew the License Agreement for 3 successive 10-year terms. We have the right to terminate the License Agreement at any time.

Source: Item 22 — CONTRACTS (FDD pages 82–83)

What This Means (2025 FDD)

According to 7 Brew's 2025 Franchise Disclosure Document, the development schedule can be extended under specific circumstances if 7 Brew causes a delay. If 7 Brew fails to accept a proposed site that meets the established criteria, and the franchisee provides written notice with at least ten days to resolve the issue, the franchisee has the right to adjust the development schedule.

Specifically, the franchisee can unilaterally add the number of days 7 Brew delayed the progress to the opening deadline for each additional 7 Brew store to be constructed under the schedule. For example, if 7 Brew delays progress by sixty days after the franchisee provides written notice and an opportunity to cure, and 7 Brew fails to cure the delay within ten days, the franchisee can add sixty days to each date in the schedule that occurs after 7 Brew's failure to cure the delay. These updated dates will then serve as the revised schedule.

However, 7 Brew also retains the right to delay development or opening of additional stores if they believe the franchisee is not prepared to operate in full compliance with their standards. In this case, 7 Brew can delay development for a time period they deem best, as long as the delay will not cause the franchisee to breach their development obligations under the Schedule, unless 7 Brew is willing to extend the Schedule proportionately to account for the delay.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.