Does 7 Brew have the right to construct Non-Traditional 7 Brew Stores within my Territory?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
We (and our affiliates) have the unrestricted right to construct, develop, and operate, and to allow other franchisees or licensees to construct, develop, and operate, Non-Traditional 7 BREW Stores physically located in the Territory. Our, our affiliate's, or another franchisee's or licensee's construction, development, and operation of a Non-Traditional 7 BREW Store physically located within the Territory will not count toward your compliance with the development schedule. Because of our rights with respect to Non-Traditional 7 BREW Stores, you will not receive an exclusive territory under the DRR. 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 to Traditional 7 BREW Stores to be constructed and developed in the Territory, we and our affiliates have the right to engage, and to grant others the right to engage, in any other activities of any nature whatsoever within the Territory, including all of the activities in which we have the right to engage in the Franchise Agreement.
Source: Item 12 — TERRITORY (FDD pages 45–49)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, 7 Brew retains the unrestricted right to construct, develop, and operate Non-Traditional 7 Brew Stores within a franchisee's territory. This right extends to allowing other franchisees or licensees to do the same. This means that even within a territory where a franchisee is developing Traditional 7 Brew stores, 7 Brew can establish Non-Traditional stores either directly or through other franchisees or licensees.
This has significant implications for a franchisee's potential market and revenue. The FDD clearly states that the development and operation of Non-Traditional 7 Brew Stores within a franchisee's territory will not count toward the franchisee's development schedule compliance. This means the franchisee cannot claim these Non-Traditional stores as part of their required development obligations. Furthermore, the document emphasizes that franchisees will not receive an exclusive territory due to 7 Brew's rights concerning Non-Traditional stores, increasing the potential for competition within the franchisee's area.
The 7 Brew FDD also clarifies the distinction between Traditional and Non-Traditional stores in terms of territorial rights. While a franchisee has the exclusive right to develop Traditional 7 Brew Stores within their designated territory, this exclusivity does not extend to Non-Traditional stores. 7 Brew and its affiliates retain all rights to engage in any activities, including those related to Non-Traditional stores, within the territory. This includes the right to grant others the ability to engage in such activities.
Prospective franchisees should be aware that this arrangement could lead to increased competition within their territory. The FDD explicitly states that franchisees may face competition from other franchisees, outlets owned by 7 Brew, or other channels of distribution or competitive brands controlled by 7 Brew. Therefore, it is crucial for potential franchisees to carefully consider the potential impact of Non-Traditional stores on their business and to discuss this aspect thoroughly with 7 Brew before entering into a franchise agreement.