Under what circumstances is 7 Brew under no obligation to grant a successor franchise?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) have requested in writing and conducted with us a business review at least six (6) months, but not more than nine (9) months, before the end of the Term and then have formally notified us of your desire to acquire a successor franchise no less than three (3) months before the end of the Term;
- (2) have substantially complied with all of your obligations under this Agreement and all other agreements with us or our affiliates related to the Store, including operated the Store in substantial compliance with Brand Standards, during the Term, as noted in the business review we conduct;
- (3) continue complying substantially with all of your obligations under this Agreement and all other agreements with us or our affiliates related to the Store between the time you formally notify us of your desire to acquire a successor franchise and the end of the Term; and
- (4) retain the right to occupy the Store at its original site, have remodeled and upgraded the Store, and otherwise have brought the Store into full compliance with thenapplicable specifications and standards for new 7 BREW Stores (regardless of cost) before this Agreement expires. We have no obligation to grant you a successor franchise if you wish to relocate the Store or no longer have the right to occupy the Store at its original site.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, there are several conditions that must be met for a franchisee to be granted a successor franchise. 7 Brew is under no obligation to grant a successor franchise if the franchisee does not meet these conditions.
Specifically, the franchisee must have requested a business review with 7 Brew between six and nine months before the end of their current term and formally notified 7 Brew of their desire to acquire a successor franchise at least three months before the term's end. The franchisee must have also substantially complied with all obligations under their agreements with 7 Brew, including operating the store in substantial compliance with brand standards, as determined during the business review. This compliance must continue between the time the franchisee requests a successor franchise and the end of the current term.
Furthermore, the franchisee must retain the right to occupy the store at its original site and have remodeled and upgraded the store to meet the then-current specifications and standards for new 7 Brew stores, regardless of the cost. 7 Brew has no obligation to grant a successor franchise if the franchisee wishes to relocate the store or no longer has the right to occupy the store at its original site. These stipulations ensure that franchisees seeking to renew their franchise are in good standing, maintain brand standards, and keep their stores up-to-date, protecting the 7 Brew brand and ensuring consistent customer experience.