Under what circumstances, besides abandonment, can 7 Brew assume management of a store?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, upon the occurrence of either (1) or (2) above, Franchisor (or its assignee) will have the right, at its cost and expense, to possess the leased premises for a period not to exceed sixty (60) days from the first day of its possession, and to operate the 7 BREW Store at the leased premises during such timeframe, without having to formally assume the Lease, to cure any of the Tenant's defaults under the Lease before the date of its possession, or to compensate Landlord for any damages it incurred on account of the termination of the Lease due to Tenant's defaults, provided, however, Franchisor (or its assignee) agrees to pay rent due under the Lease during the period it actually possesses the leased premises and to perform the other terms, covenants, obligations, and conditions of the Lease that arise while it possesses the leased premises.
At any time within or at the conclusion of the sixty (60) day period during which Franchisor has the right to possess the premises, Franchisor may notify Landlord of its election to formally assume the terms, covenants, obligations, and conditions of the Lease for the remainder of the Lease term, together with any applicable renewal options. In such event, Franchisor (or its assignee) and Landlord will enter into an agreement to document such assumption. Franchisor (or its assignee) is not a party to, and will have no liability under, the Lease (except for its performance obligations during the timeframe it possesses the demised premises), unless and until said Lease is formally assigned to, and formally assumed by, Franchisor (or its assignee) as herein provided. As a condition of the formal assignment of the Lease to Franchisor (or its assignee), Landlord may require Franchisor (or its assignee) to cure any of the Tenant's monetary defaults under the Lease before the Lease was terminated.
G. Franchisor is an intended third-party beneficiary under the provisions set forth above with independent rights to enforce them, and neither Landlord nor Tenant may alter or limit any of those provisions without Franchisor's prior written approval.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, 7 Brew has the right to possess and operate a store in specific situations, primarily related to lease defaults. 7 Brew can take possession of the leased premises for up to 60 days to address any defaults under the lease. This allows 7 Brew to maintain the store's operation and protect its brand. During this period, 7 Brew is responsible for paying rent and fulfilling the lease terms.
Within this 60-day period, 7 Brew has the option to formally assume the lease for the remainder of its term, including any renewal options. To do so, 7 Brew and the landlord must enter into an agreement documenting the lease assumption. The landlord may require 7 Brew to correct any outstanding monetary defaults under the lease before it was terminated as a condition of the formal assignment.
7 Brew is considered a third-party beneficiary with independent rights to enforce these lease-related provisions. This arrangement ensures that 7 Brew has the means to maintain control and operation of the store in situations where the franchisee fails to meet lease obligations, protecting the brand's interests and continuity.