Can the 7 Brew Brand Fund be used to support public relations activities for 7 Brew?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
reement Sections 7.E and 9)
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- Maintain a Brand Fund for advertising, marketing, research and development, public relations, Social-Media management, lead-generation, customerrelationship-management, and technology programs, materials, and activities we deem appropriate to enhance, promote, and protect the 7 BREW brand and franchise system. We describe the Brand Fund and other advertising activities below. (Franchise Agreement Section 13.A)
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- Periodically inspect and monitor the Store's operation. (Franchise Agreement Section 15.A)
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- Periodically offer refresher training courses. (Franchise Agreement Sections 6.B and D)
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- Review advertising and promotional materials you want to use. (Franchise Agreement Section 13.B)
Advertising and Marketing Programs
Brand Fund
We have established the Brand Fund to which you and other franchisees must contribute the amounts we periodically specify, not to exceed 2% of your Store's weekly Gross Sales. We currently require you and other franchisees to contribute the full 2%. 7 BREW Stores that we and our affiliates own will contribute to the Brand Fund on the same percentage basis as franchisees.
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.)
The Brand Fund may advertise locally, regionally, and/or nationally in printed and on other tangible materials, on radio or television, and/or on the Internet, as we think best. We and/or an outside regional or national advertising agency will produce all advertising and marketing. The Brand Fund periodically may give you sample Marketing Materials at no cost. We may sell you multiple copies of Marketing Materials at our direct production costs, plus any related shipping, handling, and storage charges.
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 support public relations activities. Specifically, the Brand Fund is used for advertising, marketing, research and development, public relations, Social-Media management, lead-generation, customer-relationship-management, and technology programs, materials, and activities that 7 Brew deems appropriate to enhance, promote, and protect the 7 Brew brand and franchise system.
The Brand Fund is directed by 7 Brew, which has sole control over the creative and business aspects of the fund's activities. The Brand Fund may pay for 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 marketing, advertising, and lead-generation programs; 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.
7 Brew aims to use the Brand Fund to develop and implement marketing materials and programs benefiting all 7 Brew Stores. However, 7 Brew does not have to 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 2024, approximately 40% of the Brand Fund was spent on marketing-related activities.