What is the successor-franchise fee for a 7 Brew franchise?
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 pay a $10,000 successor-franchise fee if they want to acquire a successor franchise. To be eligible for a successor franchise, the franchisee must meet several requirements. These include requesting a business review, notifying 7 Brew of their intent to acquire a successor franchise at least three months before the end of the current term, and substantially complying with all contractual obligations and brand standards.
Additionally, the franchisee must continue to comply with all contractual obligations between the time they notify 7 Brew of their intent to acquire a successor franchise and the end of the current franchise term. They are also required to remodel or upgrade the store to meet current brand standards. The franchisee must sign the then-current form of the franchise agreement and any applicable releases, assuming state law allows for such releases.
It is important to note that the terms of the new franchise agreement for the successor franchise may differ significantly from the original expiring agreement. These differences could include higher fees. However, 7 Brew will incorporate any specifically negotiated provisions agreed upon before the original agreement was signed, and the franchisee will retain the same defined Area of Protection. This ensures some level of consistency while allowing 7 Brew to update its franchise terms.