What right does 7 Brew have if the franchisee fails to sign the Franchise Agreement when required?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
If we accept a proposed site but you (or your Approved Affiliate) have not yet signed a franchise agreement for that 7 BREW Store, the DRR requires you—concurrently with signing the lease for or otherwise securing the right to possess the site—to sign (or have your Approved Affiliate sign) a separate franchise agreement (and related documents) for that Store. Nevertheless, we might allow you to sign the Franchise Agreement later at or closer to the Store's opening—if you are diligently working on the Store's development. If you (or your Approved Affiliate) cannot obtain lawful possession of the acceptable proposed site within the time period we designate, we have the right to withdraw our acceptance of the proposed site (we have that same right if you fail to sign the Franchise Agreement when required). After you and your owners (or your Approved Affiliate and its owners) sign the franchise agreement (and related documents, including Guaranty and Assumption of Obligations), its terms and conditions will control the construction, development, and operation of the 7 BREW Store (except that the required opening date is governed exclusively by the DRR's development schedule). (DRR—Section 6(c))
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, if a prospective franchisee fails to sign the Franchise Agreement when required, 7 Brew has the right to withdraw its acceptance of the proposed site. This condition is in place after 7 Brew has accepted a proposed site for a 7 Brew store.
This stipulation is significant for potential franchisees as it emphasizes the importance of adhering to the timelines and requirements set forth by 7 Brew. Securing a site and signing the Franchise Agreement are critical steps that must be completed in a timely manner. Failure to do so can result in the loss of the accepted site, potentially delaying or preventing the establishment of the franchise.
This provision protects 7 Brew by ensuring that franchisees are committed to the process and are moving forward with the development of their stores in a timely fashion. It also allows 7 Brew to maintain control over the selection and development of its franchise locations, ensuring that they meet the brand's standards and contribute to the overall success of the franchise system.