Does 7 Brew need to pre-approve the proposed Managing Owner?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
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You must designate one of your individual owners to serve as your "Managing Owner." We must pre-approve the proposed Managing Owner or any replacement Managing Owner. The Managing Owner will communicate with us directly regarding Store-related matters and must have sufficient authority to make business decisions for you and the Store. The Managing Owner's decisions will be final and will bind you. While we recommend that the Managing Owner attend certain portions of Initial Training, the Managing Owner is not required to do so.
The Store must have at least 2 fully-trained on-site managers. A Store manager need not have an equity interest in you or the Store. Store managers and your officers and directors must sign confidentiality and other agreements (including non-compete agreements) we specify or preapprove (if applicable law allows).
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 52–53)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, 7 Brew must pre-approve the proposed Managing Owner or any replacement Managing Owner. The Managing Owner will be the main point of contact between the franchisee and 7 Brew, handling all Store-related communications. This individual needs to have the authority to make final business decisions for the franchisee and the Store, and their decisions will be binding.
While 7 Brew recommends that the Managing Owner attend certain portions of the initial training, it is not mandatory. If the franchisee proposes to change the Managing Owner, they must appoint a new individual within 30 days of the former Managing Owner's departure. This Replacement Managing Owner also requires 7 Brew's pre-approval, and attendance at initial training is recommended but not required.
This requirement ensures that 7 Brew has a direct line of communication with a responsible and authorized representative of the franchisee. It also allows 7 Brew to maintain consistent standards and protect its brand by ensuring the Managing Owner is someone they deem suitable for the role. Franchisees should consider this when selecting their Managing Owner, as the individual must meet 7 Brew's approval.