Under what conditions can 7 Brew delay my development of additional 7 Brew Stores?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
Despite the development schedule in the DRR, we have the right to delay your development and/or opening of additional 7 BREW Stores within the Territory if we believe, when you apply for another Store or after you (or your Approved Affiliate) have developed and constructed but not yet opened a particular Store, that you (or your Approved Affiliate) are not yet operationally, managerially, or otherwise prepared (no matter the reason) to develop, open, and/or operate the additional 7 BREW Store in full compliance with our standards and specifications. We have the right to delay additional development and/or a Store's opening for the time period we deem best if the delay will not in our reasonable opinion cause you to breach your development obligations under the development schedule (unless we are willing to extend the schedule to account for the delay).
Furthermore, if we delay your (or your Approved Affiliate's) progress in satisfying your development obligations under the development schedule due to our failure to timely accept a proposed Store site (which is acceptable based on the criteria described above), you provide written notice to us and give us at least 10 days to cure such delay, but we fail to cure such delay within that 10-day period, then we agree that you may unilaterally adjust the development schedule to add the number of days we delayed your progress to the opening deadline for each additional 7 BREW Store to be developed by you (or your Approved Affiliate) under the development schedule following such delay.
Source: Item 12 — TERRITORY (FDD pages 45–49)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, 7 Brew has the right to delay a franchisee's development and/or opening of additional 7 Brew stores within the territory under specific conditions. This can occur if 7 Brew believes that the franchisee (or their Approved Affiliate) is not yet operationally, managerially, or otherwise prepared to develop, open, and/or operate the additional store in full compliance with 7 Brew's standards and specifications, regardless of the reason for this lack of preparedness.
This delay is subject to certain limitations. 7 Brew can only delay the development or opening for a time period they deem best, provided that the delay will not, in their reasonable opinion, cause the franchisee to breach their development obligations under the development schedule. However, 7 Brew may be willing to extend the schedule to account for the delay.
Furthermore, the FDD states that if 7 Brew delays the franchisee's progress in satisfying their development obligations due to 7 Brew's failure to timely accept a proposed store site, and the franchisee provides written notice and allows 10 days for 7 Brew to cure the delay, the franchisee may unilaterally adjust the development schedule. This adjustment involves adding the number of days 7 Brew delayed the progress to the opening deadline for each additional 7 Brew store to be developed under the schedule following the delay. This provision protects the franchisee from delays caused by the franchisor's site approval process.