Does 7 Brew have the right to grant or deny a relocation request as they deem best?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
ITORY**
Franchise Agreement
You will operate each 7 BREW Store at a specific location that we first must accept. You must find, obtain our written acceptance of, and secure a site for each Store following the procedures specified in the DRR (described in Item 11). (We do not "approve" sites; we "accept" them under the circumstances described in Item 11. When we "accept" a site, that means only that we believe the site is not inconsistent with sites that we regard as favorable, or that otherwise have been successful sites in the past, for 7 BREW Stores. "Accept" is different from "approve," which in this context might be interpreted to mean that we subjectively determined that the particular site is a good site.) You may operate the Store only at that site. You may not relocate the Store without our prior written consent, which we have the right to grant or deny as we deem best. Whether or not we will allow relocation depends on circumstances at the time and what is in the Store's and our system's best interests. Factors include, for example, the new site's market area, its proximity to other Stores in our system, whether you are complying with your Franchise Agreement, and how long it will take you to open at the new site.
Conditions for relocation approval are (1) the new site is acceptable to us, (2) you pay us a $5,000 relocation fee, (3) you reimburse any costs we incur during the relocation process, (4) you confirm that your original Franchise Agreement remains in effect and governs the Store's operation at the new site with no change in the franchise term, (5) you sign a general release, in a form satisfactory to us, of any and all claims against us and our owners, affiliates, officers, directors, employees, and agents, (6) you continue operating the Store at its original site until we authorize its closure, and (7) you de-brand and de-identify the Store's former premises within the timeframe we specify and at your own expense so it no longer is associated in any manner (in our opinion
Source: Item 12 — TERRITORY (FDD pages 45–49)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, franchisees must operate their store at a location that 7 Brew has accepted. Franchisees cannot relocate their store without 7 Brew's prior written consent, which 7 Brew has the right to grant or deny as they deem best. 7 Brew's decision to allow relocation depends on circumstances at the time and what is in the store's and the 7 Brew system's best interests. Factors include the new site's market area, its proximity to other stores, compliance with the Franchise Agreement, and the time it will take to open at the new site.
To gain relocation approval from 7 Brew, a franchisee must meet several conditions. First, the new site must be acceptable to 7 Brew. Second, the franchisee must pay a $5,000 relocation fee. Third, the franchisee must reimburse any costs 7 Brew incurs during the relocation process. Fourth, the original Franchise Agreement remains in effect without changes to the franchise term. Fifth, the franchisee must sign a general release of claims against 7 Brew. Sixth, the franchisee must continue operating at the original site until 7 Brew authorizes its closure. Finally, the franchisee must de-brand and de-identify the former premises so it is no longer associated with the 7 Brew system.
This policy is fairly standard in the franchise industry, as franchisors typically want to maintain control over the location of their stores to protect brand consistency and market strategy. The relocation fee and other costs are also common, as the franchisor may incur expenses in evaluating the new site and ensuring a smooth transition. The conditions for relocation approval are designed to protect 7 Brew's interests and ensure that the relocation will not negatively impact the brand or other franchisees. Franchisees should carefully consider these requirements before requesting a relocation.