What is the required successor-franchise fee for a 7 Brew franchise?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
se have brought the Store into full compliance with thenapplicable specifications and standards for new 7 BREW Stores (regardless of cost) before this Agreement expires. We have no obligation to grant you a successor franchise if you wish to relocate the Store or no longer have the right to occupy the Store at its original site.
To acquire a successor franchise, you and your owners must: (i) sign our then-current form of franchise agreement (and related documents), which may contain terms and conditions differing materially from any and all of those in this Agreement, including higher Royalties, Brand Fund contributions, and Tech Fees, but which, for the avoidance of doubt, will be modified to include any specifically-negotiated provisions to which we agreed with you before you signed this Agreement, will retain the same defined Area of Protection appearing in this Agreement, and will be modified to reflect that it is for a successor franchise; (ii) pay us a successor-franchise fee equal to Ten-Thousand Dollars ($10,000); and (iii) sign a general release in the form we specify as to any and all claims against us, our affiliates, and our and their respective owners, officers, directors, employees, agents, representatives, successors, and assigns. If you fail to sign and return the documents referenced above, together with the successor-franchise fee, within thirty (30) days after we deliver them to you, that will be deemed your irrevocable election not to acquire a successor franchise.
If you fail to notify us by the deadline specified in clause (a) above of your desire to acquire a successor franchise, or if you (and your owners) are not, both on the date you give us written notice of your election to acquire a successor franchise (at or after the business review) and on the date on which this Agreement expires, in substantial compliance with this Agreement and all other agreements with us or our affiliates related to the Store, you acknowledge that we need not
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, a franchisee must pay a successor-franchise fee of $10,000 to acquire a successor franchise. In addition to paying the fee, the franchisee must sign 7 Brew's then-current form of franchise agreement and related documents, which may include terms and conditions that differ from the original agreement, potentially involving higher royalties, brand fund contributions, and tech fees. The franchisee must also sign a general release as specified by 7 Brew, which covers any claims against 7 Brew, its affiliates, and their respective owners, officers, directors, employees, agents, representatives, successors, and assigns.
To be eligible for a successor franchise, the franchisee must notify 7 Brew of their desire to acquire one by the specified deadline. Both at the time of this notification and on the expiration date of the current agreement, the franchisee must be in substantial compliance with the existing agreement and all other related agreements with 7 Brew or its affiliates. Failure to meet these conditions gives 7 Brew the right to deny the successor franchise, regardless of whether 7 Brew had previously considered terminating the agreement. 7 Brew may also set additional requirements that the franchisee must fulfill by certain deadlines following the start of the successor franchise term.
It is important for prospective franchisees to understand that the terms of a successor franchise agreement can change and may include increased fees and obligations. Franchisees should maintain compliance with all agreements and deadlines to ensure eligibility for a successor franchise. The general release requirement also means franchisees must waive any potential claims against 7 Brew to secure the new franchise agreement.