Who is responsible for the lease signed for the Traditional 7 Brew Stores?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
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- We will not be involved in reviewing, negotiating, approving, or accepting any lease you sign for the Traditional 7 BREW Stores you construct and develop under the DRR. You alone are exclusively responsible for all lease matters. The only requirement we impose upon you is that the site's lease must incorporate the terms of our then-current Lease Rider (attached to the Franchise Agreement) for Traditional 7 BREW Stores. You must send us a fully-signed copy of each Store's lease within 10 days after our request. (DRR—Section 6(d))
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 34–45)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the franchisee is solely responsible for all lease matters related to Traditional 7 Brew stores. 7 Brew will not be involved in reviewing, negotiating, approving, or accepting any lease the franchisee signs. The only stipulation 7 Brew imposes is that the site's lease must incorporate the terms of their then-current Lease Rider, which is attached to the Franchise Agreement. The franchisee must also send 7 Brew a fully-signed copy of each store's lease within 10 days of their request.
This means that prospective 7 Brew franchisees bear the entire responsibility and risk associated with securing and managing the lease for their store location. They must conduct their own due diligence, negotiate lease terms, and ensure compliance with all applicable laws and regulations. The franchisee should carefully review and understand the Lease Rider provided by 7 Brew, as its terms must be incorporated into the lease agreement.
It is common practice in the franchise industry for franchisees to handle their own lease agreements, as they are typically in the best position to assess local market conditions and negotiate favorable terms. However, franchisees should seek legal counsel to review the lease agreement and ensure it protects their interests. Failing to secure an acceptable lease or comply with 7 Brew's Lease Rider could have significant financial and operational consequences for the franchisee.
While 7 Brew does not get involved in the lease negotiation, they do provide site selection criteria to help franchisees identify suitable locations. They also retain the right to approve or reject proposed sites based on these criteria. This ensures that all 7 Brew locations meet certain standards and are consistent with the brand's image and strategy. However, the ultimate responsibility for finding and securing a viable location rests with the franchisee.