During the term of the 7 Brew franchise, what activities are prohibited regarding competitive businesses?

According to the 2025 7 Brew Franchise Disclosure Document, during the franchise term, franchisees are restricted from certain activities related to competitive businesses. Specifically, a franchisee cannot have an ownership interest in, perform services for, or provide loans or guarantees to a competitive business, regardless of its location. Franchisees are also prohibited from diverting business to a competitive business and from soliciting other 7 Brew franchisees for other commercial purposes.

The FDD defines a "Competitive Business" as any business that derives more than 25% of its revenue from selling coffee or any business that grants franchises or licenses to others to operate businesses that generate more than 25% of their revenue from coffee sales. This definition is important because it sets a clear threshold for what 7 Brew considers a competitive threat, focusing on businesses significantly involved in coffee sales or franchising of coffee-centric businesses.

These non-competition covenants are designed to protect 7 Brew's market position and prevent franchisees from using their knowledge and resources gained from the franchise to benefit competing businesses. For a prospective franchisee, this means they must avoid any direct or indirect involvement with businesses that could be seen as competing with 7 Brew, as defined in the Franchise Agreement. This restriction applies throughout the entire term of the franchise agreement.