Does the Franchise Agreement assign any right, title, or interest in the Specifications to the 7 Brew franchisee?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
Owner acknowledges that Manufacturer and its affiliates are the sole and exclusive owner of all right, title, and interest in and to the Specifications including, without limitation, all copyrights, trademarks, patents, trade secrets, and other intellectual property rights related thereto. Any registrations or applications related to the Specifications including, without limitation, any trademark applications or patent applications, shall be filed at the option and expense of Manufacturer and its affiliates, prosecuted and maintained by Manufacturer and its affiliates at their option and expense, and any resulting patents or registrations shall be maintained, renewed, or extended at their option and expense. Nothing contained herein shall create, nor shall be construed as, an assignment to Owner of any right, title, or interest in or to the Specifications; it being acknowledged that all right, title, and interest in and to the Specifications are expressly reserved by Manufacturer and its affiliates. Owner agrees that it will do nothing inconsistent with Manufacturer and its affiliates' ownership of, or rights in, the Specifications, and that all use of the Specifications by Owner shall inure to the benefit of, and be on behalf of, Manufacturer and its affiliates.
Source: Item 23 — RECEIPTS (FDD pages 83–279)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the Franchise Agreement does not assign any right, title, or interest in the Specifications to the franchisee. The document explicitly states that the Manufacturer and its affiliates retain sole ownership of all rights, titles, and interests in the Specifications, including copyrights, trademarks, patents, trade secrets, and other intellectual property rights. Any registrations or applications related to the Specifications are filed, prosecuted, and maintained at the option and expense of the Manufacturer and its affiliates.
This means that a 7 Brew franchisee is granted a license to use the Specifications only within the scope of the Franchise Agreement. They cannot use the Specifications for any purpose outside the agreement, nor can they allow others to copy or recreate them. All use of the Specifications by the franchisee must benefit the Manufacturer and its affiliates.
This is a common arrangement in franchising, where the franchisor maintains control over its intellectual property to ensure brand consistency and protect its proprietary information. The franchisee's use of the Specifications is limited to operating their 7 Brew store under the terms of the Franchise Agreement. The franchisee acknowledges that they will not act in any way that is inconsistent with the Manufacturer's ownership of the Specifications.