Are there any geographic limitations on using ure Franchise, LLC for 7 Brew franchisees?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to the 2025 FDD, 7 Brew grants franchisees specific territorial rights that include geographic limitations. A franchisee is granted the right to construct, develop, and operate a Traditional 7 Brew store at a specific address, and this right is generally limited to that physical location. The franchisee cannot distribute products over the internet, wholesale, or through unapproved channels.
During the franchise 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, which is defined on Exhibit B. However, this restriction does not apply to Non-Traditional 7 Brew stores, which 7 Brew and its affiliates can operate within the Area of Protection. After the Development Rights Rider expires or is terminated, 7 Brew has the right to operate Traditional 7 Brew stores in the territory, except within the Area of Protection surrounding the franchisee's stores.
These territorial rights are subject to the franchisee's compliance with the development schedule outlined in the Development Rights Rider. Failure to comply with the schedule and cure the non-compliance within 90 days of written notice can lead to termination of these rights. The franchisee's location exclusivity for Traditional 7 Brew stores is the primary restriction on 7 Brew's activities within the territory during the Rider's term. These provisions ensure that franchisees have a protected area for their Traditional 7 Brew store, while also allowing 7 Brew to develop Non-Traditional stores and retain flexibility in the long term.