Does the 7 Brew Brand Fund pay for franchisee training?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
We will direct all programs the Brand Fund finances, with sole control over all creative and business aspects of the Fund's activities. The Brand Fund may pay for, among other things, preopening support and franchisee training, preparing, producing, and placing video, audio, and written materials, Digital Marketing, and Social Media; developing, maintaining, and
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 34–45)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the Brand Fund may cover franchisee training expenses. Specifically, the Brand Fund, over which 7 Brew maintains sole control, may allocate funds for preopening support and franchisee training, among other marketing and brand-related activities. This indicates that while not guaranteed, the Brand Fund has the potential to contribute to the costs associated with training new franchisees.
However, 7 Brew's Brand Fund is not a trust, and the company does not owe franchisees any fiduciary obligations regarding the fund's management. The Brand Fund can spend more or less than the total contributions in any given year, borrow funds, or invest surpluses. This means that the availability of funds for training can vary depending on the Brand Fund's financial status and priorities. Franchisees are required to contribute up to 2% of their store's weekly Gross Sales to the Brand Fund, with 7 Brew and its affiliates contributing on the same percentage basis.
While the Brand Fund may cover initial training, franchisees are responsible for covering the costs of retraining if a store manager fails to complete the initial training satisfactorily or if retraining is necessary due to the store not operating according to Brand Standards. Franchisees are also responsible for the compensation and expenses of their employees during any retraining sessions. Additionally, if a franchisee requests special guidance, assistance, or training beyond what 7 Brew chooses to provide, the franchisee must cover the personnel's daily charges, travel, hotel, and living expenses.