Are 7 Brew store managers required to have an equity interest in the franchise?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
The Store must have at least 2 fully-trained on-site managers. A Store manager need not have an equity interest in you or the Store. Store managers and your officers and directors must sign confidentiality and other agreements (including non-compete agreements) we specify or preapprove (if applicable law allows). Our right to pre-approve your forms is solely to protect Confidential Information and the competitiveness of 7 BREW Stores. Under no circumstances will we control the forms or terms of employment agreements you use with Store employees or otherwise be responsible for your labor relations or employment practices. We do not limit whom your Store may hire.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 52–53)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, store managers are not required to have an equity interest in the franchise. The FDD states that while the store must have at least two fully-trained on-site managers, these managers are not required to have any ownership stake in the franchise itself.
This policy provides flexibility for 7 Brew franchisees in staffing their stores. Franchisees can hire managers based on their skills and experience rather than requiring them to invest in the business. This can reduce the financial burden on potential managers and broaden the pool of qualified candidates.
However, 7 Brew requires store managers, officers, and directors to sign confidentiality and non-compete agreements. This is to protect the brand's confidential information and maintain competitiveness within the 7 Brew system. While 7 Brew has the right to pre-approve these forms, they do not control the terms of employment agreements or labor relations, which remain the franchisee's responsibility.