What are some of the activities the 7 Brew Brand Fund is used for?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
We will direct all programs the Brand Fund finances, with sole control over all creative and business aspects of the Fund's activities. The Brand Fund may pay for, among other things, preopening support and franchisee training, preparing, producing, and placing video, audio, and written materials, Digital Marketing, and Social Media; developing, maintaining, and
administering one or more System Websites; creating and administering national, regional, multiregional, local, and multi-local marketing, advertising, and lead-generation programs (which may include spending Brand Fund contributions in specific geographic markets or directing Brand Fund contributions to individual or groups of franchisees to spend on marketing, advertising, and leadgeneration programs in their own markets); using advertising, promotion, and marketing agencies and other advisors to provide assistance; establishing regional and national promotions and partnerships and hiring spokespersons to promote the 7 BREW brand; establishing on-line systems and other vehicles for centralized customer interaction; supporting public relations, market research, and other advertising, promotion, marketing, and brand-related activities; funding visits by our executives, other personnel, and third-party service providers to 7 BREW Stores to establish, enforce, and confirm compliance with the 7 BREW Store culture; and funding technology initiatives for 7 BREW Stores, including mobile training and operational performance software, cloud-based franchise-management solutions, IT phone support and database maintenance, online ordering and loyalty subscriptions, iPad mobile device management, and elearning solutions. ("Digital Marketing" means any domain name, homepage, electronic address, metatag, or other marketing in connection with any website or other online presence. "Social Media" means blogs, common social networks like Facebook and Instagram, professional networks like LinkedIn, live-blogging tools like Twitter, file, audio, and video-sharing sites, and other similar social-networking media or tools, both existing and developed in the future.)
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 34–45)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the Brand Fund is used for a variety of activities to enhance and protect the 7 Brew brand. These activities include preopening support and franchisee training, as well as the creation and distribution of marketing materials such as video, audio, and written content. The Brand Fund also supports digital marketing and social media efforts, including the development and maintenance of system websites.
In addition to marketing and training, the Brand Fund is used to administer national, regional, and local advertising programs, which may involve allocating funds to specific geographic markets or directly to franchisees for local marketing initiatives. It also covers the costs associated with hiring marketing agencies and advisors, establishing partnerships, and engaging spokespersons to promote the 7 Brew brand. Furthermore, the fund supports the establishment of online systems for customer interaction and various brand-related activities like public relations and market research.
The Brand Fund also finances visits by 7 Brew executives and third-party service providers to stores to ensure compliance with the brand's culture and standards. Additionally, it supports technology initiatives such as mobile training, operational performance software, cloud-based franchise management solutions, IT support, online ordering systems, loyalty subscriptions, and e-learning solutions. These initiatives aim to improve the operational efficiency and customer experience at 7 Brew locations.
7 Brew emphasizes that the Brand Fund is not a trust and the company does not have fiduciary obligations regarding its management. The company has the right to manage the fund for the benefit of the 7 Brew system as a whole, and is not obligated to ensure that each individual store benefits directly or proportionally to their contribution. Franchisees contribute up to 2% of their store's weekly gross sales to the Brand Fund, and 7 Brew stores owned by the company and its affiliates contribute on the same percentage basis.