What must a 7 Brew franchisee do to identify themselves in dealings with customers, suppliers, and others?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
require related to the test programs. We may discontinue any test programs before their scheduled completion dates and choose not to implement any changes to the Franchise System.
B. Compliance with Applicable Laws and Good Business Practices
You must secure and maintain all licenses, permits, and certificates required for the Store's operation and operate the Store in full compliance with all Laws, including government regulations relating to occupational hazards, advertising, health, environment, employment, workers' compensation and unemployment insurance, and withholding and payment of federal and state income taxes, social-security taxes, and sales and service taxes. Your advertising and promotion must be completely factual. The Store must in all dealings with its customers, suppliers, us, and the public adhere to the highest standards of honesty, integrity, fair dealing, and ethical conduct. You may not engage in any practice that could injure our business or the goodwill associated with the Marks, the Franchise System, and other 7 BREW Stores, provided, however, that nothing in this Section 7.B or elsewhere in this Agreement restricts or is intended to restrict your or your owners' communications with any state or federal law regulator or enforcement authority about potential violations of law. You must notify us in writing immediately if (i) any legal charge is asserted against you or the Store (even if there is no formal proceeding), (ii) any action, suit, or proceeding is commenced against you or the Store, (iii) you receive any report, citation, or notice regarding the Store's failure to comply with any licensing, health, cleanliness, or safety Law or standard, or (iv) any bankruptcy or insolvency proceeding or an assignment for the benefit of creditors is commenced by or against you, your owners, or the Store.
C. Compliance with Brand Standards
You agree to comply with all Brand Standards, as we may periodically modify them, as if they were part of this Agreement. You may not offer, sell, or provide at or from the Store any products or services that are not authorized in the Operations Manual. You must offer, sell, and provide all products and services we prescribe from time to time. We may change such products and services from time to time and from market to market based on numerous considerations. Brand Standards may direct any aspect of the Store's operation and maintenance that is material to the goodwill associated with the Marks, the Franchise System, and 7 BREW Stores. While we maintain the right to issue and modify Brand Standards, you alone exercise day-to-day control over the Store's operation and remain solely responsible for compliance with Brand Standards, which may include any one or more of the following:
- (1) required and/or authorized beverages and food products; ingredients and recipes; food-handling and preparation procedures; required and/or authorized services; and unauthorized and prohibited food products, beverages, and services (which the Store is not allowed to offer and sell under any circumstances). We always have the right to approve or disapprove in advance all products and services to be used at or sold by the Store, and the Store must comply with our directions. We may withdraw our approval of previously-authorized products and services upon notice to you based on what we think is best for 7 BREW Stores;
- (2) storage and packaging procedures and techniques;
- (3) inventory requirements so the Store may operate at full capacity;
- (4) sales, marketing, advertising, and promotional programs and the materials and media used in those programs, including participating in and complying with the requirements of any special advertising, marketing, and promotional programs we periodically specify;
- (5) adequate staffing levels to operate the Store in compliance with Brand Standards, appearance of Store personnel, and courteous service to customers.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to the 2025 7 Brew Franchise Disclosure Document, franchisees must operate their stores with honesty, integrity, and ethical conduct in all dealings with customers, suppliers, and the public. Franchisees must also make consistent marketing efforts in their community to attract customers. They must also retain customers by providing high-quality products and services while strictly adhering to the 7 Brew franchise system and brand standards.
7 Brew franchisees are responsible for communicating clearly with store employees that the franchisee is their employer, and that 7 Brew, as the franchisor, is not their employer. This communication must be included in employment agreements, human resources manuals, written and electronic correspondence, paychecks, and other materials. Franchisees must also obtain acknowledgment from all store employees that the franchisee, and not 7 Brew, is their employer.
Upon termination or expiration of the franchise agreement, franchisees must de-identify the store, which includes not identifying themselves as a current or former 7 Brew store, or using any marks or indicia associated with 7 Brew. Franchisees must also cancel any registrations relating to the use of any 7 Brew mark and deliver or destroy all signs, marketing materials, and other materials containing any 7 Brew mark.