What is the procedure for securing a site for a 7 Brew store?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
ITORY**
Franchise Agreement
You will operate each 7 BREW Store at a specific location that we first must accept. You must find, obtain our written acceptance of, and secure a site for each Store following the procedures specified in the DRR (described in Item 11). (We do not "approve" sites; we "accept" them under the circumstances described in Item 11. When we "accept" a site, that means only that we believe the site is not inconsistent with sites that we regard as favorable, or that otherwise have been successful sites in the past, for 7 BREW Stores. "Accept" is different from "approve," which in this context might be interpreted to mean that we subjectively determined that the particular site is a good site.) You may operate the Store only at that site. You may not relocate the Store without our prior written consent, which we have the right to grant or deny as we deem best. Whether or not we will allow relocation depends on circumstances at the time and what is in the Store's and our system's best interests. Factors include, for example, the new site's market area, its proximity to other Stores in our system, whether you are complying with your Franchise Agreement, and how long it will take you to open at the new site.
Conditions for relocation approval are (1) the new site is acceptable to us, (2) you pay us a $5,000 relocation fee, (3) you reimburse any costs we incur during the relocation process, (4) you confirm that your original Franchise Agreement remains in effect and governs the Store's operation at the new site with no change in the franchise term, (5) you sign a general release, in a form satisfactory to us, of any and all claims against us and our owners, affiliates, officers, directors, employees, and agents, (6) you continue operating the Store at its original site until we authorize its closure, and (7) you de-brand and de-identify the Store's former premises within the timeframe we specify and at your own expense so it no longer is associated in any manner (in our opinion) with our system and the Marks.
During the franchise term, we and our affiliates will not own or operate, or allow another franchisee or licensee to own or operate, another Traditional 7 BREW Store that has its physical location within an "Area of Protection" described in an exhibit to the Franchise Agreement. Your Area of Protection will be a radius from the walls of the Store's building equal to either 1.5 or 2 miles depending on the size of the Metropolitan Statistical Area in which your Store is located. However, there are no restrictions whatsoever on our and our affiliates' activities with respect to Non-Traditional 7 BREW Stores physically located within the Area of Protection, including our and our affiliates' right to own and operate and to grant others the right to own and operate such Non-Traditional 7 BREW Stores within the Area of Protection. Because of our and our affiliates' rights with respect to Non-Traditional 7 BREW Stores physically located within the Area of Protection, you will not receive an exclusive territory. You may face competition from other
franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
Except for your rights with respect to Traditional 7 BREW Stores physically located within the Area of Protection, we and our affiliates retain all rights with respect to all 7 BREW Stores, the Marks, the offer and sale of products and services that are similar to, competitive with, or dissimilar from the products and services your Store offers and sells, and any other activities we and they deem appropriate, whenever and wherever we and they desire. Those rights include the following:
- (1) to own and operate, and to allow other franchisees and licensees to own and operate, Traditional 7 BREW Stores at any physical locations outside the Area of Protection (including at the boundary of the Area of Protection) and on any terms and conditions we and they deem appropriate;
- (2) to own and operate, and to allow other franchisees and licensees to own and operate, Non-Traditional 7 BREW Stores at any physical locations inside and outside the Area of Protection and on any terms and conditions we and they deem appropriate;
Source: Item 12 — TERRITORY (FDD pages 45–49)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, franchisees are responsible for finding and securing a site for their store. However, 7 Brew must provide written acceptance of the site. The process for site selection is detailed in the Development Rights Rider (DRR), as referenced in Item 11 of the FDD. 7 Brew does not "approve" sites, but rather "accepts" them if they are consistent with favorable or successful locations from the past. The FDD clarifies that "accept" does not mean 7 Brew subjectively determines the site is a good one.
For franchisees with a Development Rights Rider, the franchisee must agree to develop and operate at least 5 Traditional 7 Brew stores within a specific territory. This territory is defined by geographic coordinate points with a 1.5-mile or 2-mile radius, depending on the location. The number of stores and development deadlines are determined jointly by 7 Brew and the franchisee and outlined in the DRR. 7 Brew's standards for sites at the time of selection will apply. Failure to meet development obligations can result in termination of the DRR.
It's important to note that while franchisees have exclusive rights to develop Traditional 7 Brew stores within their territory under the DRR, this exclusivity does not extend to Non-Traditional 7 Brew stores. 7 Brew and its affiliates retain the right to operate Non-Traditional stores within the territory, potentially creating competition for franchisees. Additionally, 7 Brew can delay the development of additional stores if they believe the franchisee is not prepared to operate them according to company standards. If 7 Brew's failure to timely accept a proposed site delays the franchisee's progress, the franchisee can adjust the development schedule accordingly after providing written notice and allowing 10 days for 7 Brew to address the delay.