factual

What are the seven requirements a 7 Brew franchisee must meet to renew or extend their franchise agreement?

7_Brew Franchise · 2025 FDD

Answer from 2025 FDD Document

ension of DRR. |

Provision Section in franchise or other agreement Summary
c. Requirements for franchisee 17 of Franchise You (i) timely request and conduct a business
to renew or extend Agreement
review, (ii) formally notify us of your desire
to acquire a successor franchise at least 3
months before the end of the franchise term,
(iii) substantially complied with contractual
obligations and operated Store in substantial
compliance with Brand Standards, (iv)
continue complying substantially with
contractual obligations between time you
notify us of your desire to acquire a successor
franchise and the end of the franchise term,
(v) remodel/upgrade Store, (vi) sign our then-
current form of franchise agreement and
releases (if applicable state law allows), and
(vii) pay $10,000 successor-franchise fee.
Terms of new franchise agreement that you
sign for successor franchise may differ
materially from any and all terms contained in
your original expiring Franchise Agreement
(including higher fees), provided that we will
modify the new franchise agreement to
include any specifically-negotiated provisions
to which we agreed with you before you
signed the Franchise Agreement that is
expiring, and you will retain the same defined
Area of Protection.
d.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 54–61)

What This Means (2025 FDD)

According to the 2025 7 Brew Franchise Disclosure Document, a franchisee must meet seven specific requirements to renew or extend their franchise agreement. These stipulations are detailed in Section 17 of the Franchise Agreement.

First, the franchisee must make a timely request and conduct a business review. Second, they must formally notify 7 Brew of their desire to acquire a successor franchise at least three months before the end of the current franchise term. Third, the franchisee must have substantially complied with all contractual obligations and operated the store in substantial compliance with 7 Brew's Brand Standards. Fourth, they must continue to substantially comply with all contractual obligations from the time they notify 7 Brew of their intent to acquire a successor franchise until the end of the current franchise term.

Fifth, the franchisee is required to remodel or upgrade the store to meet current brand standards. Sixth, they must sign 7 Brew's then-current form of franchise agreement and any necessary releases, if applicable state law allows. Finally, the franchisee must pay a $10,000 successor-franchise fee. It is important to note that the terms of the new franchise agreement may differ materially from the original, including potentially higher fees, although any specifically negotiated provisions from the original agreement and the defined Area of Protection will be retained.

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.