What administrative costs can the 7 Brew Brand Fund cover?

According to 7 Brew's 2025 Franchise Disclosure Document, the Brand Fund can cover a range of administrative costs. These include reimbursing 7 Brew and its affiliates for reasonable salaries and benefits of personnel managing or assisting the Brand Fund, the Brand Fund's direct administrative costs, travel expenses for personnel on Brand Fund business, meeting costs, and overhead related to Brand Fund activities. Additionally, the fund can cover other expenses incurred while administering or directing the Brand Fund and its programs.

Specifically, these expenses can include conducting market research, preparing marketing materials, collecting and accounting for Brand Fund contributions, and paying taxes due on these contributions. The Brand Fund is designed to maximize recognition of the 7 Brew brand, increase patronage of 7 Brew stores, and enhance and protect the franchise system. However, 7 Brew clarifies that the Brand Fund is not a trust, and they do not owe franchisees any fiduciary obligations related to its maintenance or administration.

7 Brew retains significant control over the Brand Fund, including the ability to spend more or less than the total contributions in any given year, borrow funds to cover deficits, invest surpluses, and roll over unspent monies. Interest earned on Brand Fund contributions will be used to pay costs before using other assets of the fund. This structure gives 7 Brew flexibility in managing the Brand Fund but also means that franchisees have limited direct control over how their contributions are spent, though they will receive an annual unaudited statement of collections and expenses.