Does 7 Brew make any commitments regarding the extent to which and where it and its affiliates will continue developing and expanding the 7 Brew store network?

According to the 2025 FDD, 7 Brew does not make any commitments regarding the extent to which and where it and its affiliates will continue developing and expanding the 7 Brew store network. This acknowledgment is part of the franchise agreement, meaning the franchisee understands and agrees to this condition when entering the franchise agreement.

This lack of commitment means that 7 Brew retains full discretion to expand its network as it sees fit, without any obligation to consider the potential impact on existing franchisees. 7 Brew and its affiliates have the right to construct, develop, and operate both Traditional and Non-Traditional 7 Brew stores, and to allow other franchisees or licensees to do the same.

For a prospective franchisee, this implies a risk that 7 Brew could open new locations, including Non-Traditional stores, that compete with their own, even within their territory. The franchisee's location exclusivity only applies to other Traditional 7 Brew stores within their Area of Protection, as defined in Exhibit B of the franchise agreement. The franchisee should be aware that this Area of Protection may not prevent competition from other 7 Brew outlets.

This is a fairly common practice in franchising, where franchisors need flexibility to grow their brand. However, prospective franchisees should carefully evaluate the potential for cannibalization and ensure they are comfortable with the level of territorial protection offered by 7 Brew before investing in a franchise.