factual

What standards will apply to new sites proposed for each new 7 Brew store?

7_Brew Franchise · 2025 FDD

Answer from 2025 FDD Document

We will review potential Store sites that you identify within the development territory. You must locate, evaluate, select, and secure the Store's site. We will not search for or select the site for you. (DRR—Section 6(a)) We first must accept each new site you propose for each new 7 BREW Store. Our then-current standards for sites will apply.

We will give you our then-current criteria for Traditional 7 BREW Store sites (including population density and other demographic characteristics, visibility, traffic flow, competition, accessibility, ingress and egress, size, and other physical and commercial characteristics) to help in the site-selection process. We will review potential Traditional 7 BREW Store sites that you identify within the development 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 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. (DRR— Section 6(b))

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, the franchisor's then-current standards for sites will apply to each new 7 Brew store. While the franchisee is responsible for locating, evaluating, and securing the store site, 7 Brew must first accept each proposed location. These standards include criteria for Traditional 7 Brew Store sites, considering factors such as population density, demographic characteristics, visibility, traffic flow, competition, accessibility, ingress and egress, size, and other physical and commercial characteristics.

7 Brew will provide its then-current criteria for site selection to aid the franchisee in the process. Although 7 Brew will review potential sites within the development territory, they are not obligated to physically inspect the sites. The franchisor has the right to require complete site reports and other materials, including photographs and digital recordings, before accepting a proposed site or conducting a site visit. Franchisees must provide all requested information to allow 7 Brew to assess each proposed site.

7 Brew aims to review and either accept or reject each proposed site within 30 days of receiving all necessary information. A site is considered rejected if written acceptance is not provided within this timeframe. 7 Brew states that it will not unreasonably withhold acceptance of a site if it aligns with favorable or successful sites based on their experience and the outlined factors. However, 7 Brew retains the right to reject any site that does not meet their criteria or to require the franchisee to acknowledge in writing that a preferred site is accepted but not recommended due to incompatibility with factors affecting site suitability. Once a site is accepted and secured, it will be designated as the store's address in the Franchise Agreement.

It is important to note that the franchisee is exclusively responsible for all lease matters, and the site's lease must incorporate the terms of 7 Brew's then-current Lease Rider. The franchisee must provide a fully-signed copy of the store's lease within 10 days of the franchisor's request. Additionally, if a proposed site is accepted before a franchise agreement is signed, the franchisee must sign a separate franchise agreement concurrently with securing the site. Failure to secure lawful possession of the site within the designated time period gives 7 Brew the right to withdraw its acceptance.

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.