factual

Does the introductory text for 7 Brew mention any transfer or assignment rights?

7_Brew Franchise · 2025 FDD

Answer from 2025 FDD Document

[Item 22: CONTRACTS]

C. Conditions for Approval of Transfer

If you and your owners are in full compliance with this Agreement, then, subject to this Section 16's other provisions:

  • (1) We will approve the transfer of a non-controlling ownership interest in you if the proposed transferee and its owners are of good moral character, have no ownership interest in and do not perform services for (and have no affiliates with an ownership interest in or performing services for) a Competitive Business, otherwise meet our then-applicable standards for non-controlling owners of 7 BREW Store franchisees, sign our then-current form of Guaranty and Assumption of Obligations or, if applicable, Owner's Undertaking of Non-Monetary Obligations, and pay us a One Thousand Dollar ($1,000) transfer fee. The term "controlling ownership interest" is defined in Section 21.M.
  • (2) If the proposed transfer involves the franchise rights granted by this Agreement or a controlling ownership interest in you or in an Entity owning a controlling ownership interest in you, or is one of a series of transfers (regardless of the timeframe over which those transfers take place) in the aggregate transferring the franchise rights granted by this Agreement or a controlling ownership interest in you or in an Entity owning a controlling ownership interest in you, then we will not

unreasonably withhold our approval of a proposed transfer meeting all of the following conditions:

  • a. on both the date you send us the transfer request and the transfer's proposed effective date: (i) the transferee and its direct and indirect owners have the necessary business experience, aptitude, and financial resources to operate the Store; (ii) the transferee otherwise is qualified under our then-existing standards for the approval of new franchisees or of existing franchisees interested in acquiring additional franchises (including the transferee and its affiliates are in substantial operational compliance, at the time of the application, under all other franchise agreements for 7 BREW Stores to which they then are parties with us); and (iii) the transferee and its owners are not restricted by another agreement (whether or not with us) from purchasing the Store or the ownership interest in you or the Entity that owns a controlling ownership interest in you;

  • b. on both the date you send us the transfer request and the transfer's proposed effective date, you have paid all required Royalties, Brand Fund contributions, Tech Fees, and other amounts owed to us and our affiliates relating to this Agreement and the Store, have submitted all required reports and statements, and are not in breach of any provision of this Agreement or another agreement with us or our affiliates relating to the Store;

  • c. on both the date you send us the transfer request and the transfer's proposed effective date, neither the transferee nor any of its direct or indirect owners or affiliates operates, has an ownership interest in, or performs services for a Competitive Business;

  • d. before or after the transfer's proposed effective date (as we determine), the transferee's management personnel, if different from your management personnel, satisfactorily complete our then-current Initial Training;

  • e. the transferee has the right to occupy the Store's site for the expected franchise term;

  • g. before the transfer's proposed effective date, you or the transferee pays us a transfer fee equal to Ten-Thousand Dollars ($10,000);

  • h. before the transfer's proposed effective date, the transferee agrees to repair and/or replace Operating Assets and upgrade the Store (including its physical structure) in accordance with our then-current requirements and specifications for new 7 BREW Stores within the timeframe we specify following the transfer's effective date;

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

What This Means (2025 FDD)

According to the 2025 FDD, the introductory text for 7 Brew does not mention any transfer or assignment rights. However, Item 22 of the FDD discusses the conditions for transfer of the franchise agreement. Specifically, it states that if a franchisee and their owners are in full compliance with the agreement, 7 Brew will not unreasonably withhold approval of a proposed transfer if certain conditions are met.

These conditions include that the transferee must have the necessary business experience, aptitude, and financial resources to operate the store. The transferee must also be qualified under 7 Brew's standards for new or existing franchisees, and not be restricted by any other agreement from purchasing the store or ownership interest. All outstanding royalties, brand fund contributions, tech fees, and other amounts owed to 7 Brew and its affiliates must be paid, and the franchisee must not be in breach of any agreement.

Additionally, neither the transferee nor any of its owners or affiliates can operate, have an ownership interest in, or perform services for a competitive business. The transferee's management personnel must also complete 7 Brew's initial training, and the transferee must have the right to occupy the store's site for the expected franchise term. Before the transfer, the franchisee or transferee must pay 7 Brew a transfer fee of $10,000 and agree to repair or replace operating assets and upgrade the store to meet current standards for new 7 Brew stores.

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.