Can the 7 Brew Brand Fund be used for local marketing programs?
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
administering one or more System Websites; creating and administering national, regional, multiregional, 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 leadgeneration 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 brand; establishing on-line systems and other vehicles for centralized customer interaction; supporting public relations, market research, and other advertising, promotion, marketing, and brand-related activities; funding visits by our executives, other personnel, and third-party service providers to 7 BREW Stores to establish, enforce, and confirm compliance with the 7 BREW Store culture; and funding technology initiatives for 7 BREW Stores, including mobile training and operational performance software, cloud-based franchise-management solutions, IT phone support and database maintenance, online ordering and loyalty subscriptions, iPad mobile device management, and elearning solutions. ("Digital Marketing" means any domain name, homepage, electronic address, metatag, or other marketing in connection with any website or other online presence. "Social Media" means blogs, common social networks like Facebook and Instagram, professional networks like LinkedIn, live-blogging tools like Twitter, file, audio, and video-sharing sites, and other similar social-networking media or tools, both existing and developed in the future.)
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 can be used for local marketing programs. 7 Brew has sole control over the Brand Fund's activities and directs all programs it finances. The Brand Fund may cover the costs of creating and administering local, multi-local, regional, multi-regional, and national marketing, advertising, and lead-generation programs.
The FDD specifies that the Brand Fund can spend contributions in specific geographic markets or direct them to individual franchisees or groups of franchisees for marketing, advertising, and lead-generation programs in their own markets. This allows for flexibility in how the Brand Fund is used, enabling 7 Brew to target specific areas or support franchisees directly.
While 7 Brew aims to benefit all stores with the Brand Fund, it is not obligated to ensure that expenditures in any area are proportionate to contributions from stores in that area. This means that some 7 Brew locations may benefit more than others from Brand Fund activities, and the fund isn't required to spend a specific amount in any particular market area. Franchisees should consider that the Brand Fund's resources may not be evenly distributed across all locations.