factual

Does 7 Brew search for or select the site for the franchisee's store?

7_Brew Franchise · 2025 FDD

Answer from 2025 FDD Document

  1. Grant of Franchises and Site Selection and Acquisition.
  • (a) You must send us a separate application for each Traditional 7 BREW Store that you (or your Approved Affiliate) wish to develop in the Territory. You must locate, evaluate, select, and secure the Store's site. We will not search for or select the site for you. In granting you development rights under this Rider, we are relying on your knowledge of the real estate market in the Territory and your ability to locate and access sites.
  • (b) We will give you our then-current criteria for Traditional 7 BREW Store sites (including, without limitation, population density and other demographic characteristics, visibility, traffic flow, competition, accessibility, ingress and egress, size, and other physical and commercial characteristics) to help you select and identify each Traditional 7 BREW Store site. We will review potential Traditional 7 BREW Store sites that you identify within the Territory but have no obligation to visit the Territory to inspect physically the sites you propose for your potential Stores. We have the right to condition our acceptance of a proposed site, or a proposed site visit, on your first sending us complete site reports and other materials (including, without limitation, photographs and digital recordings) we request. You must give us all information and materials we request to assess each proposed Traditional 7 BREW Store site.

Source: Item 22 — CONTRACTS (FDD pages 82–83)

What This Means (2025 FDD)

According to 7 Brew's 2025 Franchise Disclosure Document, the franchisee is responsible for finding and securing the location for their store. 7 Brew will not search for or select the site. Instead, 7 Brew relies on the franchisee's knowledge of the real estate market within their territory and their ability to locate and secure suitable sites. However, the franchisee must obtain written acceptance of the site from 7 Brew, following the procedures specified in the Development Rights Rider.

7 Brew provides its then-current criteria for store sites, including factors like population density, demographics, visibility, traffic flow, competition, accessibility, size, and other physical and commercial characteristics. While 7 Brew will review potential sites identified by the franchisee, they are not obligated to physically inspect the sites in the territory. 7 Brew has the right to condition their acceptance of a proposed site, or a site visit, on the franchisee first sending complete site reports and other requested materials, such as photographs and digital recordings.

This means that while 7 Brew offers guidance and must approve the final site, the onus is on the franchisee to conduct the initial market research, identify potential locations, and present them to 7 Brew for consideration. The franchisee bears the risk of selecting a viable location, as 7 Brew makes no guarantees about a site's suitability and is not responsible if a site fails to meet the franchisee's expectations. This is a fairly standard arrangement in the franchise industry, where the local knowledge of the franchisee is valued, but the franchisor retains ultimate approval to maintain brand consistency and protect the overall network.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.