Can 7 Brew operate Non-Traditional 7 Brew Stores inside the Area of Protection?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
agree to operate the Store in compliance with this Agreement for the entire Term unless this Agreement is properly terminated under Section 18.
C. Territorial Rights
During the Term, we and our affiliates will not, except as provided in this Section 3.C and in Section 3.D below, own or operate, or allow another franchisee or licensee to own or operate, another Traditional 7 BREW Store that has its physical location within the geographical area described on Exhibit B (the "Area of Protection").
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, 7 Brew and its affiliates have the right to operate Non-Traditional 7 Brew Stores within a franchisee's Area of Protection. The document specifies that there are no restrictions whatsoever on 7 Brew's and its affiliates' activities regarding Non-Traditional 7 Brew Stores within the Area of Protection. This includes the right to own, operate, and grant others the right to own and operate such Non-Traditional stores.
A "traditional" 7 Brew store is defined as a freestanding facility with at least one drive-thru window. Any store without a drive-thru window is considered "non-traditional". The franchisee's exclusive rights to construct, develop, and operate 7 Brew stores within their territory apply solely to Traditional 7 Brew Stores.
This reservation of rights means that while a franchisee is granted an Area of Protection for Traditional 7 Brew Stores, 7 Brew retains the freedom to establish Non-Traditional outlets within that same area. This could include smaller format stores, kiosks, or other concepts that do not have a drive-thru. This is a critical point for potential franchisees to understand, as it clarifies the scope and limitations of their territorial protection. The franchisee's focus on developing Traditional stores is incentivized by the fact that only those stores count toward compliance with the development schedule.