Does 7 Brew own locations for lease to franchisees?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
We will use reasonable efforts to review and accept or reject each site you propose within 30 days after we receive all requested information and materials. If we do not accept the site in writing within 30 days, the site is deemed rejected. We will not unreasonably withhold our acceptance of a site if, in our and our affiliates' experience and based on the factors outlined above, the proposed site is not inconsistent with sites that we and our affiliates regard as favorable or that otherwise have been successful sites in the past for Traditional 7 BREW Stores. However, we have the absolute right to reject any site not meeting our criteria or to require you to acknowledge in writing that a site you prefer is accepted but not recommended due to its incompatibility with certain factors bearing on a site's suitability as a location for a Traditional 7 BREW Store. After we accept and you secure a proposed site, we will identify that site as the Store's address in the Franchise Agreement. (DRR—Section 6(b)) We do not own locations for lease to franchisees.
If we accept a proposed site but you (or your Approved Affiliate) have not yet signed a franchise agreement for that 7 BREW Store, the DRR requires you—concurrently with signing the lease for or otherwise securing the right to possess the site—to sign (or have your Approved Affiliate sign) a separate franchise agreement (and related documents) for that Store. Nevertheless, we might allow you to sign the Franchise Agreement later at or closer to the Store's opening—if you are diligently working on the Store's development. If you (or your Approved Affiliate) cannot obtain lawful possession of the acceptable proposed site within the time period we designate, we have the right to withdraw our acceptance of the proposed site (we have that same right if you fail to sign the Franchise Agreement when required). After you and your owners (or your Approved Affiliate and its owners) sign the franchise agreement (and related documents, including Guaranty and Assumption of Obligations), its terms and conditions will control the construction, development, and operation of the 7 BREW Store (except that the required opening date is governed exclusively by the DRR's development schedule). (DRR—Section 6(c))
If you do not find and secure acceptable Store sites so that you can open the required Stores by the opening deadlines in the DRR, we have the right to terminate the DRR.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 34–45)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, 7 Brew does not own locations for lease to its franchisees. This means that prospective franchisees are responsible for finding and securing their own locations that meet 7 Brew's criteria.
Securing a suitable location is a critical step in the franchise process, and franchisees must sign a lease or otherwise secure the right to possess the site. The lease must incorporate the terms of 7 Brew's then-current Lease Rider, which is attached to the Franchise Agreement. Franchisees are solely responsible for all lease matters, including reviewing, negotiating, and approving the lease. They must also provide 7 Brew with a fully-signed copy of the store's lease within 10 days of the franchisor's request.
7 Brew will review proposed sites and provide feedback, generally within 30 days. While 7 Brew has the right to reject sites that do not meet their criteria, they also pledge not to unreasonably withhold acceptance of sites consistent with successful locations. However, 7 Brew has the absolute right to reject any site not meeting their criteria or to require the franchisee to acknowledge in writing that a site they prefer is accepted but not recommended due to its incompatibility with certain factors. If a franchisee cannot obtain lawful possession of an acceptable site within the designated time, 7 Brew can withdraw its acceptance. Franchisees are also responsible for ensuring the store complies with all laws and lease requirements.