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

According to the 2025 FDD, operating a 7 Brew store in full compliance with the franchise agreement and brand standards is critical. Any deviation from contractual requirements, including brand standards, constitutes a violation of the agreement. This can lead to administrative and management costs for 7 Brew to address the violation, in addition to potential damages to the franchise system, business opportunities, or the goodwill associated with the Marks.

The FDD also states that 7 Brew may periodically designate and approve brand standards, manufacturers, suppliers, and/or distributors for the operating assets, products, and services that 7 Brew stores are authorized to use or sell. 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 standards and requirements could be considered a breach of the franchise agreement.

Furthermore, the franchisee's right to operate the store is limited to products prepared and sold, and services provided, at the store's physical location. It does not include the right to distribute products and services over the Internet, on a wholesale basis, through delivery, or through other unapproved channels. Franchisees must also comply with brand standards for the system website and all marketing materials, and must obtain prior written approval before engaging in any digital marketing or social media activities that mention or describe the store or display any Marks. Failure to comply with these restrictions could also constitute a breach of the franchise agreement.