Under what conditions can a 7 Brew franchisee terminate the Franchise Agreement due to a breach by 7 Brew?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
You may terminate this Agreement if we materially breach any of our obligations under this Agreement and fail to correct that breach within thirty (30) days after you deliver to us written notice of the breach; provided, however, if we cannot reasonably correct the breach within those thirty (30) days but give you within the thirty (30) days evidence of our effort to correct the breach within a reasonable time period, then the cure period will run through the end of that reasonable time period. Your termination of this Agreement other than according to this Section 18.A will be deemed a termination without cause and your breach of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, a franchisee can terminate the Franchise Agreement if 7 Brew materially breaches its obligations under the agreement. However, the franchisee can only terminate after providing written notice to 7 Brew of the breach and 7 Brew fails to correct the breach within thirty days.
If 7 Brew cannot reasonably correct the breach within thirty days, the cure period may be extended. To qualify for an extension, 7 Brew must provide evidence of their effort to correct the breach within a reasonable time period during the initial thirty-day period. In this case, the cure period will run through the end of that reasonable time period.
The FDD specifies that any termination by the franchisee that does not follow these procedures will be considered a termination without cause and a breach of the Franchise Agreement by the franchisee. This highlights the importance of adhering to the outlined notification and cure period requirements to avoid being in breach of contract.