Does 7 Brew retain rights to the Marks outside of a franchisee's Area of Protection?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
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;
- (3) to offer and sell and to allow others (including franchisees, licensees, and other distributors) to offer and sell, inside and outside the Area of Protection and on any terms and conditions we and they deem appropriate, products and services that are identical or similar to and/or competitive with those offered and sold by 7 BREW Stores, whether such products and services are identified by the Marks or other trademarks or service marks, through any advertising media, distribution channels (including the Internet and retailers), and shipping and delivery methods and to any customer, no matter where located (provided that, subject to clauses (4) and (5) below, we and our affiliates will not operate or allow others to operate food trucks within the Area of Protection offering and selling products that are identical or similar to and/or competitive with those offered and sold by 7 BREW Stores);
Source: Item 12 — TERRITORY (FDD pages 45–49)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, 7 Brew and its affiliates retain all rights to the Marks and 7 Brew Stores outside of a franchisee's Area of Protection. This includes the right to operate Traditional 7 Brew Stores, and to allow other franchisees and licensees to do the same, at any physical locations outside the Area of Protection. These activities can be carried out on any terms and conditions that 7 Brew deems appropriate.
7 Brew also retains the right to operate Non-Traditional 7 Brew Stores both inside and outside a franchisee's Area of Protection. They can offer and sell products and services identical or similar to those offered by 7 Brew Stores through any advertising media, distribution channels, and shipping methods, inside and outside the Area of Protection. These products and services can be identified by the Marks or other trademarks.
This means that a 7 Brew franchisee's rights to the Marks are limited to their specific Area of Protection. Outside of this area, 7 Brew can operate or franchise other stores, sell similar products, and conduct other activities without compensating the franchisee. This is a fairly standard practice in franchising, as franchisors typically need the flexibility to expand and manage their brand as they see fit. However, it's important for prospective franchisees to understand that their rights to the brand and its associated trademarks are limited to their defined territory.