Can 7 Brew condition the license of proprietary software on a 7 Brew franchisee signing a software license agreement?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
advise your suppliers and others with whom you, we, our affiliates, and other franchisees deal that you are in default under any agreement with us or our affiliates (but only if we or our affiliate has notified you of such default).
E. Computer System
(1) You agree to obtain and use the computer hardware and software, point-of-sale system, computer-related accessories and peripheral equipment, tablets, smart phones, on-line, digital, and App ordering systems, and on-line inventory ordering system we periodically specify (the "Computer System"). You must use the Computer System to access the System Website and
to input and access information about your sales and operations. The Computer System must operate continuously. We will have continuous, unlimited access to all information maintained on the Computer System (excluding matters relating to labor relations and employment practices) and to the content of any 7 BREW e-mail accounts we provide you.
- (2) We may periodically modify the Computer System's specifications and components.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to the 2025 7 Brew Franchise Disclosure Document, franchisees must obtain and use the computer hardware and software, point-of-sale system, computer-related accessories and peripheral equipment, tablets, smart phones, on-line, digital, and App ordering systems, and on-line inventory ordering system that 7 Brew specifies. This system is referred to as the "Computer System." Franchisees are required to use this Computer System to access the System Website and to input and access information about their sales and operations. The Computer System must operate continuously, and 7 Brew will have continuous, unlimited access to all information maintained on it, excluding labor relations and employment practices.
7 Brew may periodically modify the Computer System's specifications and components, and these modifications may require franchisees to purchase, lease, or license new or modified computer components, software, and peripherals, as well as obtain service and support for the Computer System. While the FDD does not explicitly state that 7 Brew will require a separate software license agreement, the fact that franchisees may need to "license" new or modified software components suggests that such an agreement could be a condition of using the proprietary software.
In effect, 7 Brew retains significant control over the technology used in the franchise, ensuring uniformity and access to critical data. However, this also means that franchisees may incur additional costs for updates and modifications to the Computer System. Prospective franchisees should clarify with 7 Brew the specific terms and conditions related to software licensing, including costs, obligations, and any potential liabilities.