What is the consequence if a 7 Brew franchisee 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 agreement or 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. A Data Security Incident includes any act that initiates either internally or from outside the Store's computers, point-of-sale terminals, and other technology or networked environment and violates the Law or explicit or implied security policies. This includes attempts to gain unauthorized access to the Franchise System, 7 Brew Stores, or their Data or to view, copy, or use Consumer Data or Confidential Information without authorization or in excess of authorization; unwanted disruption or denial or service; unauthorized use of a system for processing or storage of Data; and changes to system hardware, firmware, or software characteristics without 7 Brew's knowledge, instruction, or consent.

This means that if a 7 Brew franchisee's actions (or inactions) lead to a data breach or system compromise due to non-compliance with the franchise agreement or security protocols, the franchisee is responsible for covering 7 Brew's losses. This could include legal fees, remediation costs, and other expenses associated with addressing the incident. The franchisee is also responsible for compensating 7 Brew for any other damages resulting from the breach of contract.

This clause highlights the importance of maintaining the security and integrity of the computer system and protecting consumer data. Franchisees must adhere to all requirements outlined in the franchise agreement and take necessary precautions to prevent data security incidents. Failure to do so can result in significant financial liabilities for the franchisee.