What is the 'Brand Fund' also referred to as for 7 Brew?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
13. Advertising and Marketing
A. Brand Fund
- (1) We have established a fund ("Brand Fund" or "Fund") for advertising, marketing, research and development, public relations, Social-Media management, lead-generation, customer-relationship-management, and technology programs, materials, and activities, the purpose of which is to enhance, promote, and protect the 7 BREW Store brand and Franchise System. You agree to contribute to the Brand Fund the amounts we periodically specify, not to exceed two percent (2.0%) of the Store's weekly Gross Sales. Your Brand Fund contribution is due and payable at the same time and in the same manner as the Royalty or in such other manner we periodically specify. 7 BREW Stores that we and our affiliates own will contribute to the Brand Fund on the same percentage basis as franchisees.
- (2) 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, preparing, producing, and placing video, audio, and written materials, Digital Marketing, and Social Media; developing, maintaining, and administering one or more System Websites; creating and administering national, regional, multi-regional, local, and multi-local marketing, advertising, and lead-generation programs (which may include spending Brand Fund contributions in specific geographic markets or directing Brand Fund contributions to individual or groups of franchisees to spend on marketing, advertising, and lead-generation programs in their own markets); using advertising, promotion, and marketing agencies and other advisors to provide assistance; establishing regional and national promotions and partnerships and hiring spokespersons to promote the 7 BREW Store brand; establishing on-line systems and other vehicles for centralized customer interaction; supporting public relations, market research and
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' is also referred to as the 'Fund'. This fund is designated for advertising, marketing, research and development, public relations, social media management, lead generation, customer relationship management, and technology programs. The primary goal of the Brand Fund is to enhance, promote, and protect the 7 Brew brand and its franchise system.
Franchisees are required to contribute to the Brand Fund, with contributions not exceeding two percent of the store's weekly gross sales. These contributions are due at the same time as royalty payments, unless otherwise specified by 7 Brew. It's important to note that 7 Brew stores owned by the company and its affiliates also contribute to the Brand Fund on the same percentage basis as franchisees, ensuring a unified financial commitment to the brand's growth and marketing efforts.
7 Brew maintains complete control over the Brand Fund's activities, including creative and business decisions. The fund may be used for various purposes, such as creating marketing materials, managing websites, and establishing partnerships. While 7 Brew aims to benefit all stores, it is not obligated to ensure that expenditures are proportionate to contributions from specific geographic areas. This means that some franchisees may see more direct benefits from the fund than others, depending on the marketing strategies and programs implemented.