Will the 7 Brew Brand Fund be kept in a separate bank account?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) We will account for the Brand Fund separately from our other funds (although we need not keep Brand Fund contributions in a separate bank account) and not use the Brand Fund for any of our general operating expenses.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the Brand Fund will be accounted for separately from 7 Brew's other funds. However, 7 Brew is not required to keep Brand Fund contributions in a separate bank account. This means that while the funds are tracked independently for accounting purposes, they may be commingled with other company funds in a general account.
This arrangement gives 7 Brew flexibility in managing its finances, but it's important for prospective franchisees to understand how the Brand Fund is being managed. While the FDD states the Brand Fund will not be used for general operating expenses, franchisees should be aware that the contributions are not legally protected in a segregated account.
7 Brew will provide an annual, unaudited statement of Brand Fund collections and expenses within sixty days after the fiscal year end, or otherwise give a copy of the statement upon reasonable request. 7 Brew may also have the Brand Fund audited annually at the Brand Fund's expense. Franchisees may want to inquire about the frequency and availability of audited statements to ensure transparency in the fund's management.