How is the amount of the De-Identification Fee determined for a 7 Brew franchise?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee(1, 6) | Amount(2) | Due Date | Remarks |
|---|---|---|---|
| De-Identification Fee | Out-of-pocket cost reimbursement | As incurred | You must reimburse our costs of de- identifying your Store if you fail to do so. |
Source: Item 6 — OTHER FEES (FDD pages 16–23)
What This Means (2025 FDD)
According to the 2025 7 Brew Franchise Disclosure Document, the De-Identification Fee is based on the out-of-pocket costs 7 Brew incurs to de-identify a franchisee's store if the franchisee fails to do so themselves. This means the fee will vary depending on the specific costs associated with removing 7 Brew branding, signage, and other identifying elements from the location.
In practical terms, this fee is only applicable if a franchisee's store is closing or otherwise ceasing to operate as a 7 Brew and the franchisee does not fulfill their obligation to remove all branding. The fee covers 7 Brew's direct expenses for this de-identification process, ensuring the location no longer appears to be associated with the 7 Brew brand.
As the fee is a reimbursement for actual costs incurred by 7 Brew, it is not fixed and can vary significantly depending on the size of the store, the extent of branding to be removed, and the labor and materials required. Franchisees should ensure they understand their obligations for de-identification upon termination or non-renewal of their franchise agreement to avoid incurring this fee. This is a fairly standard practice in franchising, as franchisors need to protect their brand identity and prevent consumer confusion when a location ceases to operate under the brand name.