Does 7 Brew place any restrictions on its or its affiliates' activities regarding Non-Traditional 7 Brew Stores located within a franchisee's Area of Protection?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 |
| described on Exhibit B (the “Area of Protection”). However, there are no restrictions whatsoever | |
| on our and our affiliates’ activities with respect to Non- | |
| located within the Area of Protection, including, but not limited to, our and our affiliates’ right to | |
| own and operate and to grant others the right to own and operate such Non- |
Source: Item 23 — RECEIPTS (FDD pages 83–279)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, 7 Brew and its affiliates have no restrictions on their activities regarding Non-Traditional 7 Brew stores within a franchisee's area of protection. This includes the right to own, operate, and grant others the right to own and operate Non-Traditional 7 Brew stores.
This means that a 7 Brew franchisee's protected area only applies to Traditional 7 Brew stores. 7 Brew retains the right to establish Non-Traditional stores, such as those in airports, malls, or similar venues, within the franchisee's protected area without any limitations. This could potentially lead to increased competition within the franchisee's territory from outlets owned or operated by 7 Brew or its affiliates.
Prospective franchisees should carefully consider the implications of this policy. While a protected area for Traditional stores is granted, the lack of restrictions on Non-Traditional stores could impact the franchisee's market share and profitability. It is important to understand 7 Brew's plans for Non-Traditional locations in the area and how they might affect the franchisee's business before investing in a franchise.