Are there any financial thresholds mentioned in the introductory text for 7 Brew?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
ions) that you and your owners (or your Approved Affiliate and its owners) must sign for each Traditional 7 BREW Store constructed and developed pursuant to this Rider will be our then-current form of franchise agreement (and related documents, including Guaranty and Assumption of Obligations),
any or all terms of which may differ substantially and materially from any or all terms contained in the First Franchise Agreement, provided, however, that:
- (i) the initial franchise fee will be Twenty-Five Thousand Dollars ($25,000) for the second and each subsequent Traditional 7 BREW Store to be developed pursuant to this Rider; and
- (ii) the terms specified in our then-current form of franchise agreement will be modified for each new Traditional 7 BREW Store to include the same terms that you negotiated with us and that appear in any amendment to the First Franchise Agreement, unless you (and your Approved Affiliates) are not then in substantial compliance (subject to any applicable opportunity to cure) with this Rider, the First Franchise Agreement, and all other franchise agreements then in effect between us and you (and your Approved Affiliates) for 7 BREW Stores. If you (and your Approved Affiliates) are not then in substantial compliance with this Rider, the First Franchise Agreement, and all other franchise ag
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to the 2025 7 Brew Franchise Disclosure Document, the initial franchise fee for the second and each subsequent Traditional 7 Brew store is $25,000. This fee is applicable when a franchisee is developing multiple locations under a development rider agreement.
This financial threshold is significant because it outlines the cost associated with expanding a 7 Brew franchise beyond the initial location. The initial franchise fee covers the rights granted to the franchisee for the additional store and reserves the territory, excluding others from establishing a 7 Brew location in the same area. However, this exclusivity may not apply to Non-Traditional 7 Brew stores.
It's important to note that the $25,000 fee is non-refundable, regardless of whether the franchisee complies with the development schedule or if the agreement is terminated. Additionally, the franchisee must be in substantial compliance with all existing agreements to ensure that the terms negotiated in the first franchise agreement are carried over to subsequent agreements. Failure to maintain compliance could result in the terms of the new franchise agreement differing substantially from the original agreement.