For 7 Brew, who bears the risk of loss for the Unit until the title passes to the Owner?

According to 7 Brew's 2025 Franchise Disclosure Document, the manufacturer retains the risk of loss for the Unit until the title is transferred to the owner. The document specifies that ownership and title of the Unit will pass to the owner when the Unit leaves the Manufacturer's Site.

Specifically, the risk of loss remains with the manufacturer until the 7 Brew unit leaves their site. After that point, the owner assumes responsibility. This is a crucial point for prospective franchisees to understand, as it clarifies who is liable for any damages or losses that may occur during the manufacturing and initial stages of the unit's journey.

This arrangement is fairly standard in franchise agreements involving physical units or equipment. It is important for the franchisee to secure appropriate insurance coverage once the unit leaves the manufacturer's site to protect against potential losses during transit, delivery, and installation. The franchisee should also confirm the manufacturer's insurance coverage during the construction phase.