Under what circumstances can 7 Brew terminate the franchise agreement immediately upon written notice?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right at any time to terminate this Rider and your rights under this Rider to construct and develop Traditional 7 BREW Stores within the Territory, such termination to be effective upon our delivery to you of written notice of termination:
- (a) if you fail to satisfy any development obligation under the Schedule and do not cure such failure within ninety (90) days after receiving written notice from us;
- (b) if you fail to satisfy any other obligation under this Rider, which default you have no right to cure;
- (c) if the First Franchise Agreement, or another franchise agreement between us and you (or your Approved Affiliate) for a 7 BREW Store, is terminated by us in compliance with its terms or by you (or your Approved Affiliate) without cause; or
- (d) if we have delivered a formal written notice of default to you (or your Approved Affiliate) under the First Franchise Agreement, or another franchise agreement between us and you (or your Approved Affiliate) for a 7 BREW Store, and you (or your Approved Affiliate) fail to cure that default within the required timeframe.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, 7 Brew can terminate the franchise agreement immediately upon delivering written notice to the franchisee if certain events occur. These events are not specified in the provided excerpts.
However, the excerpts do detail some termination conditions related to a Development Rider. 7 Brew has the right to terminate the Development Rider, which covers the construction and development of Traditional 7 Brew stores, if the franchisee fails to meet development obligations and does not cure the failure within 90 days of written notice. 7 Brew can also terminate the Rider if the franchisee fails to satisfy any other obligation under the Rider that they do not have the right to cure, or if the First Franchise Agreement (or another franchise agreement) is terminated either by 7 Brew in compliance with its terms or by the franchisee without cause. Additionally, termination can occur if the franchisee fails to cure a default under the First Franchise Agreement (or another franchise agreement) within the required timeframe after receiving a formal written notice of default.
Because the specific conditions allowing immediate termination of the Franchise Agreement are not listed in the provided excerpts, prospective franchisees should ask 7 Brew for a comprehensive list of these conditions. Understanding these conditions is crucial for assessing the risks and obligations associated with the franchise.