Under what conditions can 7 Brew assign its Franchise Agreement to a third party?

According to the 2025 FDD, 7 Brew has the unrestricted right to assign its right-of-first-refusal to a third party, including an affiliate. This means that if a franchisee decides to sell their 7 Brew store, the franchisor has the first option to buy it. However, 7 Brew can transfer this right to another party, giving that third party the ability to purchase the franchise under the same terms.

This assignment of the right-of-first-refusal allows 7 Brew to involve other entities in the potential acquisition of existing franchises. This could be a strategic move to facilitate expansion or consolidation within the 7 Brew system. For a franchisee, this means that if they decide to sell, the potential buyer could be 7 Brew itself or another party designated by 7 Brew.

The FDD also states that all references to "we" or "us" in Section 16.G(2) include 7 Brew's assignee if they have exercised their right to assign this right-of-first-refusal to a third party. This clarifies that the assignee assumes all the rights and responsibilities that 7 Brew would have had regarding the right-of-first-refusal.

It is important for a prospective franchisee to understand that 7 Brew retains significant control over who can buy a franchise if they decide to sell. The ability to assign the right-of-first-refusal provides 7 Brew with flexibility in managing its franchise network and potentially influencing the future ownership of individual stores.