What is the bond number associated with the Increase Penalty Rider for 7 Brew?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
g on the Company in the future with respect to any bond or understanding to which it is attached.
I, Kevin E. Hughes, the undersigned, Assistant Secretary of each of the Companies, do hereby certify that the above and foregoing is a true and correct copy of the Power of Attorney executed by said Companies, which remains in full force and effect.
Dated this
day of October 2023
Kevin E. Hughes, Assistant Secretary
INCREASE PENALTY RIDER
BOND NO. 107883372
To be attached and form a part of Bond No. 107883372 dated the 13th Day of October, 2023, executed by Travelers Casualty and Surety Company of America as surety, on behalf of Brew Culture Franchise, LLC as current principal of record, and in favor of State of Maryland, as Obligee for Franchisor Bond, and in the amount of Six Hundred Thousand Dollars and 00/100 ($600,000.00).
In consideration of the agreed premium charged for this bond, it is understood and agreed that Travelers Casualty and Surety Company of America hereby consents that effective from the 11th Day of September, 2024, said bond shall be amended as follows:
THE BOND PENALTY SHALL BE INCREASED:
FROM: Six Hundred Thousand Dollars and 00/100 ($600,000.00)
TO: Eight Hundred Fifty Thousand Dollars and 00/100 ($850,000.00)
The INCREASE of said bond penalty shall be effective as of the 11
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to the 2025 FDD, the Increase Penalty Rider for 7 Brew is associated with bond number 107883372. This rider is attached to and forms a part of the original bond, which was executed on October 13, 2023, by Travelers Casualty and Surety Company of America on behalf of Brew Culture Franchise, LLC, in favor of the State of Maryland.
The purpose of the Increase Penalty Rider is to increase the bond penalty from $600,000 to $850,000, effective September 11, 2024. This change ensures that the bond provides continuous protection, subject to the changes in the penalty amount. However, the aggregate liability of the bond will not exceed the amount of liability assumed at the time the default acts were committed, and the liability is not cumulative.
For a prospective 7 Brew franchisee, this means that the franchisor has secured a bond to comply with franchise regulations in Maryland, and the bond amount has been increased to provide additional financial security. This bond protects the franchisee in the event that 7 Brew fails to meet its obligations under the franchise agreement, up to the specified bond amount. The bond and its increase are signed and dated by Brew Culture Franchise, LLC, and Travelers Casualty and Surety Company of America.