What is the length of each successor franchise term for 7 Brew?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
ements attached to this disclosure document.**
| Provision | Section in franchise or other agreement | Summary | |---|---|---| | a. Length of the franchise term | 3.B of Franchise Agreement and 2 and 3 of DRR | Starts on date Franchise Agreement is signed and expires 15 years from date on which the Store opens for business. DRR term depends on your development commitment. | | b. Renewal or extension of the term | 17 of Franchise Agreement | If you are in good standing, you potentially may acquire 2 successor franchises—each for 5 years—on our then-current terms (although we often give franchisees additional successor franchise rights if they ask for it). No renewal or extension of DRR. |
| Provision | Section in franchise or other agreement | Summary |
|---|---|---|
| c. Requirements for franchisee | 17 of Franchise | You (i) timely request and conduct a business |
| to renew or extend | Agreement | |
| review, (ii) formally notify us of your desire | ||
| to acquire a successor franchise at least 3 | ||
| months before the end of the franchise term, | ||
| (iii) substantially complied with contractual | ||
| obligations and operated Store in substantial | ||
| compliance with Brand Standards, (iv) | ||
| continue complying substantially with | ||
| contractual obligations between time you | ||
| notify us of your desire to acquire a successor | ||
| franchise and the end of the franchise term, | ||
| (v) remodel/upgrade Store, (vi) sign our then- | ||
| current form of franchise agreement and | ||
| releases (if applicable state law allows), and | ||
| (vii) pay $10,000 successor-franchise fee. | ||
| Terms of new franchise agreement that you | ||
| sign for successor franchise may differ | ||
| materially from any and all terms contained in | ||
| your original expiring Franchise Agreement | ||
| (including higher fees), provided that we will | ||
| modify the new franchise agreement to | ||
| include any specifically-negotiated provisions | ||
| to which we agreed with you before you | ||
| signed the Franchise Agreement that is | ||
| expiring, and you will retain the same defined | ||
| Area of Protection. | ||
| d. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 54–61)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the initial franchise term starts on the date the Franchise Agreement is signed and expires 15 years from the date the store opens for business. Franchisees in good standing have the potential to acquire two successor franchises, each lasting for 5 years, based on the then-current terms and conditions set by 7 Brew.
To be eligible for a successor franchise, franchisees must meet several requirements. These include a timely request and completion of a business review, formal notification of the desire to acquire a successor franchise at least 3 months before the end of the current term, and substantial compliance with contractual obligations and brand standards. Franchisees must also continue to comply with their contractual obligations between the notification of their desire to acquire a successor franchise and the end of the current term.
Additional requirements for obtaining a successor franchise include remodeling or upgrading the store, signing the then-current form of the franchise agreement and releases (if applicable state law allows), and paying a $10,000 successor-franchise fee. The terms of the new franchise agreement for the successor franchise may differ significantly from the original expiring agreement, potentially including higher fees. However, 7 Brew will modify the new agreement to include any specifically negotiated provisions agreed upon before the original agreement was signed, and the franchisee will retain the same defined Area of Protection.