Can the 7 Brew Brand Fund spend more than the total contributions in a fiscal year?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
- (4) The Brand Fund may spend in any fiscal year more or less than the total Brand Fund contributions in that year, borrow from us or others (paying reasonable interest) to cover deficits, invest any surplus for future use, and roll over unspent monies to the following year.
We may use new Brand Fund contributions to pay Brand Fund deficits incurred during previous years.
We will use all interest earned on Brand Fund contributions to pay costs before using the Brand Fund's other assets.
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 has the ability to spend more than the total contributions it receives in a fiscal year. This means that 7 Brew can utilize various financial mechanisms to ensure the Brand Fund has sufficient resources to support its marketing and promotional activities, even if current contributions are not enough.
To cover any deficits, the Brand Fund can borrow money from 7 Brew or other sources, incurring reasonable interest expenses. Additionally, any surplus funds can be invested for future use, and unspent monies can be rolled over to the following year. This provides 7 Brew with flexibility in managing the Brand Fund and ensuring its long-term sustainability.
Furthermore, 7 Brew is allowed to use new Brand Fund contributions to address deficits that may have occurred in previous years. The interest earned on Brand Fund contributions will be used to cover costs before tapping into the Brand Fund's other assets. This approach ensures that the Brand Fund is managed efficiently and that resources are allocated effectively to support the 7 Brew brand and franchise system.