How many successor franchises can a 7 Brew franchisee potentially acquire?
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. |
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, a franchisee in good standing has the potential to acquire up to two successor franchises. Each of these successor franchises would have a term of 5 years. However, 7 Brew notes that they often grant franchisees additional successor franchise rights if they request it.
To acquire a successor franchise, the franchisee must meet certain requirements outlined in the Franchise Agreement. These include requesting a business review, formally notifying 7 Brew of their desire to acquire a successor franchise at least 3 months before the end of the current term, and substantially complying with all contractual obligations and brand standards. The franchisee must also continue to comply with these obligations between the notification and the end of the current term.
Additional requirements include remodeling or upgrading the store, signing 7 Brew's then-current franchise agreement and releases (if applicable by state law), and paying a $10,000 successor-franchise fee. The terms of the new franchise agreement may differ significantly from the original, potentially including higher fees. However, any specifically negotiated provisions agreed upon before signing the original agreement will be incorporated, and the franchisee will retain the same defined Area of Protection.