factual

Does the 7 Brew Owner's Undertaking survive the expiration or termination of the Agreement?

7_Brew Franchise · 2025 FDD

Answer from 2025 FDD Document

s owed to us (and our affiliates) that are then unpaid. If we terminate this Agreement on any ground specified under Section 18.B, or if you terminate this Agreement without cause, before the Term's scheduled expiration date, you also will be liable to us for all of our damages caused by your breach of contract (to the extent allowed by Law).

B. De-Identification

Upon termination or expiration of this Agreement, you must de-identify the Store in compliance with this Section 19.B and as we reasonably require. De-identification includes, but is not limited to, taking the following actions:

  • (1) beginning immediately upon the effective date of termination or expiration, you and your owners may not directly or indirectly at any time afterward or in any manner (except in connection with other 7 BREW Stores you or they own and operate): (a) identify yourself or themselves in any business as a current or former 7 BREW Store or as one of our current or former franchisees; (b) use any Mark, any colorable imitation of a Mark, any trademark, service mark, or commercial symbol that is confusingly similar to any Mark, any copyrighted items, or other indicia of a 7 BREW Store for any purpose; or (c) use for any purpose any trade dress, trade name, trademark, service mark, or other commercial symbol suggesting or indicating a connection or association with us.
  • (2) immediately upon the effective date of termination or expiration, you must take the action required to cancel all fictitious or assumed-name or equivalent registrations relating to your use of any Mark;

  • (3) you must at your own cost and without any payment from us for such items, at our option, deliver to us, make available to us for pick-up, or destroy, in any case within twenty (20) days after the De-identification Date (defined below), all signs, Marketing Materials, forms, and other materials containing any Mark. If you fail to do so voluntarily when we require, we and our representatives may enter the Store at our convenience and remove these items without liability to you, the landlord, or any other third party for trespass or any other claim. You must reimburse our costs of doing so;
  • (4) you must at your own cost and without any payment from us for such items, at our option, deliver to us, make available to us for pick-up, or destroy, in any case within thirty (30) days after the De-identification Date, all materials that are proprietary to the 7 BREW Store brand. If you fail to do so voluntarily when we require, we and our representatives may enter the Store at our convenience and remove these items without liability to you, the landlord, or any other third party for trespass or any other claim. You must reimburse our costs of doing so;
  • (5) you must at your own expense within twenty (20) days after the De-identification Date make the alterations we specify to distinguish the Store clearly from its former appearance and from other 7 BREW Stores in order to prevent public confusion. If you fail to do so voluntarily when we require, we and our representatives may enter the Store at our convenience and take this action without liability to you, your landlord, or any other third party for trespass or any other claim. We need not compensate you or the landlord for any alterations. You must reimburse our costs of de-identifying the Store;
  • (6) you must within fifteen (15) days after the De-identification Date notify the telephone company and all telephone directory publishers (both web-based and print) of the termination or expiration of your right to use any telephone or other numbers and telephone directory listings associated with any Mark; authorize, and not interfere with, the transfer of those numbers and directory listings to us or at our direction; and/or instruct the telephone company to forward all calls made to your numbers to numbers we specify. If you fail to do so, we may take whatever action and sign whatever documents we deem appropriate on your behalf to effect these events;

Source: Item 22 — CONTRACTS (FDD pages 82–83)

What This Means (2025 FDD)

According to the 2025 7 Brew Franchise Disclosure Document, several obligations of the franchisee and their owners survive the termination or expiration of the franchise agreement. These include de-identification of the store, maintaining confidentiality, and adhering to a covenant not to compete.

Upon termination or expiration, the franchisee must de-identify the 7 Brew store, which means they cannot identify themselves as a current or former franchisee, use any of 7 Brew's marks or confusingly similar marks, or use any trade dress suggesting a connection with 7 Brew. The franchisee must also cancel any assumed name registrations related to the use of 7 Brew's marks. All signs, marketing materials, and other items containing 7 Brew's marks must be delivered to 7 Brew or destroyed at the franchisee's expense. Furthermore, the franchisee and their owners must cease using any of 7 Brew's confidential information and return all copies of the operations manual and other confidential materials. They are prohibited from profiting from consumer data or other confidential information after the agreement ends.

Additionally, a covenant not to compete restricts the franchisee and their immediate family from having any interest in a competitive business located at the store's site or within three miles of the former store site or another 7 Brew store. This restriction applies if 7 Brew terminates the agreement, the franchisee terminates without cause, or the agreement expires without a successor franchise being granted. However, this restriction does not prohibit ownership of less than 3% of a class of securities publicly traded on a U.S. stock exchange.

7 Brew also retains the right to notify customers that a 7 Brew store will no longer operate at the location and inform them of other nearby 7 Brew locations. These post-termination obligations are typical in franchising to protect the brand's integrity and prevent unfair competition.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.