Under what circumstances might 7 Brew allow the Franchise Agreement to be signed later?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
If we accept a proposed site but you (or your Approved Affiliate) have not yet signed a franchise agreement for that 7 BREW Store, the DRR requires you—concurrently with signing the lease for or otherwise securing the right to possess the site—to sign (or have your Approved Affiliate sign) a separate franchise agreement (and related documents) for that Store. Nevertheless, we might allow you to sign the Franchise Agreement later at or closer to the Store's opening—if you are diligently working on the Store's development. If you (or your Approved Affiliate) cannot obtain lawful possession of the acceptable proposed site within the time period we designate, we have the right to withdraw our acceptance of the proposed site (we have that same right if you fail to sign the Franchise Agreement when required). After you and your owners (or your Approved Affiliate and its owners) sign the franchise agreement (and related documents, including Guaranty and Assumption of Obligations), its terms and conditions will control the construction, development, and operation of the 7 BREW Store (except that the required opening date is governed exclusively by the DRR's development schedule). (DRR—Section 6(c))
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 34–45)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, typically, when 7 Brew accepts a proposed site, the franchisee is expected to sign the franchise agreement concurrently with securing the lease. This requirement is outlined in the Development Rights Rider (DRR). However, 7 Brew may allow the franchisee to sign the Franchise Agreement at a later date, closer to the store's opening, if the franchisee is diligently working on the store's development.
This flexibility provides a potential benefit to franchisees who may need more time to finalize development-related tasks before fully committing to the franchise agreement. However, it's important to note that this is not guaranteed and is contingent on the franchisee demonstrating diligent progress in the store's development.
7 Brew retains the right to withdraw acceptance of the proposed site if the franchisee fails to obtain lawful possession of the site within the designated time period or fails to sign the Franchise Agreement when initially required. This underscores the importance of adhering to the franchisor's timelines and requirements to avoid potential setbacks in the franchise process. The DRR also stipulates that the required opening date is governed exclusively by the development schedule outlined in the DRR.