factual

Does 7 Brew or its affiliates collect fees on behalf of third parties?

7_Brew Franchise · 2025 FDD

Answer from 2025 FDD Document

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Column 1 Column 2 Column 3 Column 4
Type of Fee(1, 6) Annual Meeting / Convention Amount(2) Will vary under circumstances (not to exceed $1,000 per person; does not include your actual out-of-pocket Due Date As incurred Remarks You (or your designated representative we approve) may attend an annual franchisee meeting, in which case you must pay an attendance fee.
Product and Service Purchases attendance costs paid to third parties) Varies depending on products and services you buy from us or our affiliates As incurred During the franchise term, you must buy certain products and services from us or our affiliates, from designated or approved distributors and suppliers, or according to our standards and specifications. If we require you to buy any products or services from us or our affiliates, we will give you a price list identifying
Payments for Amounts Due to Third-Party Vendors Depends on amounts charged by third-party vendors Due by Friday after the end of each calendar-week period (each calendar week currently begins on Monday and ends on Sunday)(4) the applicable costs. We expect to negotiate (from time to time) single-payer agreements with third-party vendors of various technology and other services and products (to achieve greater discounts and/or economies of scale for franchisees) where the third party vendors will require us or our affiliate to sign the particular license/supply/service agreement and to be directly responsible for paying for the services or products. In that case, we or our affiliate will collect the applicable amounts from our franchisees on a pro rata or other basis to reimburse us or our affiliate for the payments we must make to the vendors on the franchisees' behalf. While we do not currently plan to charge an administrative fee for our involvement, we have the right to charge you an administrative fee equal to 10% of each payment we collect from you.

Column 1 Column 2 Column 3 Column 4
Type of Fee(1, 6) Amount(2) Due Date Remarks
Supplemental Training You Request to be Provided at Your Store Up to $1,500 per trainer per day plus expenses As incurred If you request training courses or programs to be provided locally, you must pay our then-current training fee and our training personnel's travel and living expenses.
Testing and Evaluation Costs Actual testing/evaluation costs incurred (amount depends on circumstances, including supplier's location, testing required, and item involved) As incurred Covers our actual costs of testing new products/services or inspecting new suppliers you propose.
Relocation $5,000 plus reasonable costs we incur As incurred Due only if you relocate Store with our approval.
Audit Reimbursement of cost of inspection or audit, including legal fees and independent accountants' fees, plus travel expenses, room and board, and compensation of our employees (amount depends on nature and extent of your non compliance) As incurred Due if you fail to report or understate Gross Sales by 2% or more.

Source: Item 6 — OTHER FEES (FDD pages 16–23)

What This Means (2025 FDD)

According to 7 Brew's 2025 Franchise Disclosure Document, 7 Brew and its affiliates generally do not collect fees on behalf of third parties, except as specifically noted in the document. However, 7 Brew has the right to negotiate single-payer agreements with third-party vendors for technology and other services, requiring 7 Brew or its affiliates to be responsible for payments to these vendors. In such cases, 7 Brew or its affiliate will collect the applicable amounts from franchisees on a pro rata or other basis to reimburse for these payments. While 7 Brew does not currently plan to charge an administrative fee for this, it retains the right to charge a fee equal to 10% of each payment collected from the franchisee.

Additionally, franchisees are responsible for payments for amounts due to third-party vendors, with the due date being the Friday after the end of each calendar-week period. The calendar week currently begins on Monday and ends on Sunday.

Franchisees may also be required to reimburse 7 Brew for the costs of third-party quality-assurance, food-safety-audit, guest-satisfaction, and "mystery shop" programs that 7 Brew institutes for 7 Brew stores. Furthermore, franchisees are responsible for reimbursing 7 Brew for taxes that 7 Brew must pay to any state taxing authority on account of the franchisee's operation.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.