Can the 7 Brew Brand Fund be used to prepare Marketing Materials for 7 Brew?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
and duties specified here.
The Brand Fund's principal purposes are to maximize recognition of the Marks, increase patronage of 7 BREW Stores, and enhance, promote, and protect the 7 BREW brand and franchise system. Although we will try to use the Brand Fund in the aggregate to develop and implement Marketing Materials and programs benefiting all 7 BREW Stores, we need not ensure that Brand Fund expenditures in or affecting any geographic area are proportionate or equivalent to Brand Fund contributions by 7 BREW Stores operating in that geographic area or that any 7 BREW Store benefits directly or in proportion to its Brand Fund contribution from the development of Marketing Materials or the implementation of programs. (In other words, the Brand Fund need not spend any specific amount in your market area.) We have the right, but no obligation, to use collection agents and institute legal proceedings at the Brand Fund's expense to collect unpaid Brand Fund contributions. We also may forgive, waive, settle, and compromise all claims by or against the Brand Fund. We assume no other direct or indirect liability or obligation to you for collecting amounts due to, maintaining, directing, or administering the Brand Fund.
We have the right at any time to defer or reduce the Brand Fund contributions of any 7 BREW Store franchisee and, upon 30 days' prior written notice to you, to reduce or suspend Brand Fund contributions and operations for one or more periods of any length and terminate (and, if terminated, reinstate) the Brand Fund. If we terminate the Brand Fund, we will either (i) spend the remaining Fund balance on permitted programs and expenditures or (ii) distribute all unspent funds to our then-existing franchisees, and to us and our affiliates, in proportion to their and our respective Brand Fund contributions during the preceding 12 months. (Franchise Agreement – Section 13.A)
Local Marketing and Advertising Cooperatives
We do not require you to spend any minimum amount to advertise and promote your Store locally. We do not have the right to require the formation of advertising cooperatives, and there are none. All Marketing Materials and advertising, marketing, and promotional activities must be legal and not misleading and conform to our policies. To protect the goodwill that we and our affiliates have accumulated in the "7 BREW" name and other Marks, before using them you must send us samples or proofs of all Marketing Materials that we did not prepare or already approve or that we prepared or approved but you want to change in any way. You may not use any
Marketing Materials that we have not approved or have disapproved.
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 to prepare Marketing Materials. The Brand Fund's principal purposes are to maximize recognition of the Marks, increase patronage of 7 Brew stores, and enhance, promote, and protect the 7 Brew brand and franchise system.
The Brand Fund may pay for preparing, producing, and placing video, audio, and written materials, Digital Marketing, and Social Media. It can also be used for creating and administering national, regional, multiregional, local, and multi-local marketing, advertising, and lead-generation programs. 7 Brew retains sole control over all creative and business aspects of the Fund’s activities.
7 Brew or an outside regional or national advertising agency will produce all advertising and marketing. The Brand Fund periodically may give franchisees sample Marketing Materials at no cost and may sell multiple copies of Marketing Materials at their direct production costs, plus any related shipping, handling, and storage charges. The Brand Fund may reimburse 7 Brew and its affiliates for the reasonable salaries and benefits of personnel who manage and administer the fund, including preparing Marketing Materials.