What is the consequence for a 7 Brew franchisee who disables the store's computer system?

According to 7 Brew's 2025 Franchise Disclosure Document, if a Data Security Incident results from a franchisee's failure to comply with the Franchise Agreement requirements for protecting the Computer System and Consumer Data, the franchisee must indemnify 7 Brew under Section 20.E and compensate 7 Brew for all other damages incurred as a result of the breach of the agreement.

In practical terms, this means that if a 7 Brew franchisee's actions (or inactions) lead to a data breach or security issue because they didn't follow the rules, they could be held financially responsible for any losses or damages 7 Brew incurs. This could include legal fees, costs associated with notifying affected customers, and any other expenses related to resolving the incident.

This clause highlights the importance of franchisees adhering to the brand's technology and data security protocols. It also demonstrates that 7 Brew takes data protection seriously and will seek to recover costs from franchisees who fail to meet these obligations. Franchisees should ensure they fully understand their responsibilities regarding the computer system and consumer data to avoid potential financial liabilities.