What are the terms of the contract between 7 Brew and ure Franchise, LLC?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
review this Agreement and all other materials we gave or made available to you.
3. Grant of Franchise
A. Grant of Franchise
Subject to this Agreement's terms, we grant you the right, and you commit, to construct, develop, and operate a Traditional 7 BREW Store at the address identified on Exhibit B (the "Store") using the Franchise System and the Marks. (If the Store's address is unknown as of the Effective Date, the address will be determined as provided in Section 4.A and then listed on an amended and restated Exhibit B we will give you.) Except as provided in this Agreement, your right to operate the Store is limited to products prepared and sold, and services provided, at the Store's physical location. It does not include the right to distribute products and services over the Internet, on a wholesale basis (for resale to another retailer or wholesaler), through delivery, or through other supply or distribution channels (for example, unapproved Apps, catalog sales, mailorder sales, infomercials, or telemarketing).
B. Term
The franchise term (the "Term") begins on the Effective Date and expires fifteen (15) years from the date on which the Store opens for business. The Term is subject to earlier termination under Section 18. You agree to operate the Store in compliance with this Agreement for the entire Term unless this Agreement is properly terminated under Section 18.
C. Territorial Rights
During the Term, we and our affiliates will not, except as provided in this Section 3.C and in Section 3.D below, own or operate, or allow another franchisee or licensee to own or operate, another Traditional 7 BREW Store that has its physical location within the geographical area described on Exhibit B (the "Area of Protection"). However, there are no restrictions whatsoever on our and our affiliates' activities with respect to Non-Traditional 7 BREW Stores physically located within the Area of Protection, including, but not limited to, our and our affiliates' right to own and operate and to grant others the right to own and operate such Non-Traditional 7 BREW Stores within the Area of Protection.
D. Reservation of Rights
Except for your exclusive rights described in Section 3.C above with respect to Traditional 7 BREW Stores physically located within the Area of Protection, we and our affiliates retain all rights with respect to all 7 BREW Stores, the Marks, the offer and sale of products and services that are similar to, competitive with, or dissimilar from the products and services your Store offers and sells, and any other activities we and they deem appropriate, whenever and wherever we and they desire, without regard to the competitive impact on your Store. We and you agree that our rights will be as broad as possible. Specifically, but without limitation, we and our affiliates reserve the following rights:
(1) to own and operate, and to allow other franchisees and licensees to own and operate, Traditional 7 BREW Stores at any physical locations outside the Area of Protection (including at the boundary of the Area of Protection) and on any terms and conditions we and they deem appropriate;
- (2) to own and operate, and to allow other franchisees and licensees to own and operate, Non-Traditional 7 BREW Stores at any physical locations inside and outside the Area of Protection and on any terms and conditions we and they deem appropriate;
- (3) to offer and sell and to allow others (including franchisees, licensees, and other distributors) to offer and sell, inside and outside the Area of Protection and on any terms and conditions we and they deem appropriate, products and services that are identical or similar to and/or competitive with those offered and sold by 7 BREW Stores, whether such products and services are identified by the Marks or other trademarks or service marks, through any advertising media, distribution channels (including the Internet and retailers), and shipping and delivery methods and to any customer, no matter where located (provided that, subject to clauses (4) and (5) below, we and our affiliates will not operate or allow others to operate food trucks within the Area of Protection offering and selling products that are identical or similar to and/or competitive with those offered and sold by 7 BREW Stores);
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to the 2025 FDD, the franchise agreement between 7 Brew and the franchisee, outlines several key terms. 7 Brew grants the franchisee the right to construct, develop, and operate a Traditional 7 Brew store at a specific location using the 7 Brew Franchise System and Marks. This right is limited to products prepared and sold, and services provided, at the store's physical location, excluding distribution over the Internet, wholesale, delivery, or other unapproved channels. The franchisee commits to this operation under the terms of the agreement.
The franchise term lasts for 15 years from the store's opening date, subject to earlier termination as per Section 18 of the agreement. During this term, 7 Brew and its affiliates will not operate or allow others to operate another Traditional 7 Brew store within the franchisee's Area of Protection, as defined in Exhibit B. However, this restriction does not apply to Non-Traditional 7 Brew Stores, which 7 Brew and its affiliates can operate or license within the Area of Protection without any limitations.
The franchisee is required to insert specific provisions into their lease agreement, ensuring the premises are used only to operate a 7 Brew store during the franchise term. The landlord must also send copies of all default notices and notices of intent to terminate the lease to 7 Brew. The agreement becomes valid once fully executed by both parties, and 7 Brew reserves the right to modify Brand Standards or other aspects of the Franchise System as it deems best, without granting the franchisee the right to demand similar variations. The initial franchise fee for the second and subsequent Traditional 7 Brew stores is $25,000.