What is the minimum number of 7 Brew Stores a franchisee must commit to developing?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not offer single-unit franchises. In other words, we grant franchises only to qualified franchisees that commit to multi-unit development by developing a specific number of 7 BREW Stores (at least 5 Stores) within a defined territory according to a pre-determined development schedule. These franchisees may open and operate their 7 BREW Stores directly or through "Approved Affiliates," which are entities at least 75% of whose ownership is owned and controlled by the franchisee or its owners (although we often reduce this percentage to as low as 51% upon a franchisee's request). Our Development Rights Rider to the Franchise Agreement (Exhibit B), which we also reference as "DRR," governs a franchisee's multi-unit development rights and obligations.
Franchisees must sign our then-current form of Franchise Agreement for each additional 7 BREW Store they develop under the DRR. While that form may differ substantially and materially year to year from the first Franchise Agreement they sign for their first 7 BREW Store to be developed (our current version of Franchise Agreement is disclosed in this disclosure document), the initial franchise fee will not change for the 2nd and each subsequent 7 BREW Store you commit to develop under the DRR. In addition, we will modify our then-current form of franchise agreement for each new 7 BREW Store to include the same terms that you negotiated with us and that appear in any amendment to your first Franchise Agreement, unless you (and your Approved Affiliates) are not then in substantial compliance (subject to any applicable cure opportunity) with the DRR, the first Franchise Agreement, and all other franchise agreements then in effect. If you (and your Approved Affiliates) are not then in substantial compliance with the DRR, the first Franchise Agreement, and all other franchise agreements then in effect and fail to cure such failure within any applicable opportunity to cure, then the terms of our then-current form of franchise agreement will not be modified as provided above to include the terms we previously negotiated with you.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–12)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the company does not offer single-unit franchise opportunities. Instead, 7 Brew grants franchises only to qualified franchisees who commit to multi-unit development. This means a franchisee must agree to develop a specific number of 7 Brew stores, with a minimum commitment of at least 5 stores, within a defined territory according to a pre-determined development schedule.
These franchisees have the option to operate their 7 Brew stores directly or through "Approved Affiliates." An Approved Affiliate is defined as an entity where the franchisee or its owners own and control at least 75% of the ownership. However, 7 Brew may reduce this ownership percentage to as low as 51% upon a franchisee's request. The Development Rights Rider to the Franchise Agreement, also referenced as "DRR," governs a franchisee's multi-unit development rights and obligations.
Each additional 7 Brew store developed under the DRR requires the franchisee to sign the then-current form of the Franchise Agreement. While the terms of this agreement may change substantially from year to year compared to the initial Franchise Agreement, the initial franchise fee remains the same for the second and subsequent stores committed to under the DRR. Furthermore, 7 Brew will modify the then-current form of the franchise agreement for each new store to include the same terms negotiated in any amendment to the first Franchise Agreement, provided the franchisee and their Approved Affiliates are in substantial compliance with the DRR, the first Franchise Agreement, and all other franchise agreements then in effect.