What provisions regarding the lease are required to be inserted for a 7 Brew store franchise?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
-----------------------------------|------------| | [] One and one-half (1½) miles. | | | BREW CULTURE FRANCHISE, LLC, | FRANCHISEE | | a Wyoming limited liability company | | | By: | | | Name: John Davidson | [Name] By: | | Title: Manager | Title: | | Date:, 20 | Date:, 20 |
EXHIBIT C TO THE BREW CULTURE FRANCHISE, LLC FRANCHISE AGREEMENT
LEASE RIDER
LEASE PROVISIONS FOR 7 BREW STORE FRANCHISES
The following provisions must be inserted into the lease for the Store you will operate under the "7 BREW" brand (the "Lease"). You may add this language via a rider or addendum to your Lease as long as the rider or addendum is signed by both the tenant and the landlord. Please send us a copy of the signed Lease and any riders or addenda.
REQUIRED LANGUAGE:
- A. During the Term of the franchise agreement (the "Franchise Agreement") between Tenant and BREW CULTURE FRANCHISE, LLC ("Franchisor"), Tenant will use the premises only to operate a 7 BREW Store.
- B. Landlord will send to Franchisor copies of all default notices, and all notices of Landlord's intent to terminate the Lease (or any rights of Tenant under the Lease) or evict Tenant from the leased premises, simultaneously with sending such notices to Tenant. Such copies must be sent to:
Brew Culture Franchise, LLC 2 North College Avenue Fayetteville, Arkansas 72701 Attn: Legal Department
- C. Tenant may assign or sublet the Lease to Franchisor or its affiliates upon expiration or termination of the Franchise Agreement, and Landlord will not withhold its consent to this assignment or sublet. Landlord will not impose or assess any assignment or subletting fee or similar payment or accelerate rental payments under the Lease in connection with the assignment or sublet.
- D. Franchisor or its affiliates may enter the premises to make any modifications or alterations necessary to protect the Franchise System and the Marks or to cure any default under the Franchise Agreement or Lease at any time and without prior notice to Landlord.
- E. Tenant will not assign or sublease the premises, renew or extend the term of the Lease, or modify the Lease in any manner without Franchisor's prior written approval.
- F. Upon the occurrence of any of the following:
- (1) a default by Tenant under the Lease (whether or not Landlord intends to terminate the Lease due to that default), the Franchise Agreement, or any document or instrument securing or relating to the Franchise Agreement, or
(2) the termination of the Franchise Agreement before its term expires by Franchisor or by Tenant for any reason other than an uncured default by Franchisor,
Franchisor will have the right (but no obligation), exercisable upon delivery of written notice to Tenant and Landlord, to compel an assignment or sublet of the Lease, and all of Tenant's rights under the Lease, to Franchisor or to an assignee or sublessee of Franchisor's choice, at Franchisor's option.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, there are specific lease provisions that must be included in the lease agreement for a 7 Brew store. These provisions are designed to protect 7 Brew's interests and ensure the consistent operation of the franchise. The franchisee is responsible for incorporating these terms into their lease, potentially through a rider or addendum, and must provide 7 Brew with a copy of the signed lease agreement.
Specifically, the lease must state that the premises will be used solely for operating a 7 Brew store during the term of the franchise agreement. Additionally, the landlord is required to send 7 Brew copies of all default notices and notices of intent to terminate the lease or evict the tenant. These notices must be sent to Brew Culture Franchise, LLC at their Fayetteville, Arkansas headquarters, directed to the Legal Department.
Furthermore, 7 Brew, or its assignee, has the right to possess the leased premises for up to 60 days to operate the 7 Brew store, addressing any defaults under the lease, without formally assuming the lease. During this period, 7 Brew is responsible for paying rent and fulfilling other lease obligations. 7 Brew also has the option to formally assume the lease for the remainder of its term, including renewal options, by entering into an agreement with the landlord. 7 Brew is considered a third-party beneficiary with the right to enforce these provisions, which cannot be altered without their written consent. These requirements ensure that 7 Brew has some control over the location and continued operation of the franchise, even in situations where the franchisee faces difficulties.