What are the seven requirements a 7 Brew franchisee must meet to renew or extend their franchise agreement?
7_Brew Franchise · 2025 FDDAnswer 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.