factual

What constitutes a breach of the 7 Brew franchise agreement regarding the use of the Marks?

7_Brew Franchise · 2025 FDD

Answer from 2025 FDD Document

You acknowledge the importance of operating the Store in full compliance with this Agreement and Brand Standards. You further acknowledge that your deviation from any contractual requirement, including any Brand Standard, is a violation of this Agreement and will trigger incalculable administrative and management costs for us to address the violation (separate and apart from any damages your violation might cause to the Franchise System, our business opportunities, or the goodwill associated with the Marks).

D. Approved Products, Services, and Suppliers

(1) We may periodically designate and approve Brand Standards, manufacturers, suppliers, and/or distributors for the Operating Assets, products, and services we periodically authorize 7 BREW Stores to use or sell. You must purchase or lease all Operating Assets, products, and services you use or sell at the Store only according to Brand Standards and, if we require, only from manufacturers, suppliers, or distributors we designate or approve (which may include or be limited to us, certain of our affiliates, and/or other restricted sources). We and/or our affiliates may derive revenue—in the form of promotional allowances, volume discounts, commissions, other discounts, performance payments, signing bonuses, rebates, marketing and advertising allowances, free products, and other economic benefits and payments—from suppliers that we designate, approve, or recommend for some or all 7 BREW Stores on account of those suppliers' prospective or actual dealings with your Store and other 7 BREW Stores. That revenue may or may not be related to services we and our affiliates perform. All amounts received from suppliers, whether or not based on your or other franchisees' purchases from those suppliers, will be our and our affiliates' exclusive property, which we and our affiliates may retain and use without restriction

Source: Item 22 — CONTRACTS (FDD pages 82–83)

What This Means (2025 FDD)

According to the 2025 FDD, a 7 Brew franchisee breaches the franchise agreement by deviating from any contractual requirement, including any Brand Standard. 7 Brew emphasizes the importance of operating the store in full compliance with the agreement and Brand Standards.

Deviation from these standards triggers administrative and management costs for 7 Brew to address the violation, separate from any damages to the Franchise System, business opportunities, or the goodwill associated with the Marks. This means that even unintentional non-compliance can lead to financial repercussions for the franchisee.

7 Brew may periodically designate and approve Brand Standards, manufacturers, suppliers, and/or distributors for the Operating Assets, products, and services. Franchisees must purchase or lease all Operating Assets, products, and services according to Brand Standards and, if required, only from designated or approved manufacturers, suppliers, or distributors. Failure to adhere to these designated sources and standards would also constitute a breach of the agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.