Is a 7 Brew franchisee reimbursed for delivering, making available for pick-up, or destroying materials proprietary to the 7 Brew brand after the De-identification Date?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) you must at your own cost and without any payment from us for such items, at our option, deliver to us, make available to us for pick-up, or destroy, in any case within twenty (20) days after the De-identification Date (defined below), all signs, Marketing Materials, forms, and other materials containing any Mark.
If you fail to do so voluntarily when we require, we and our representatives may enter the Store at our convenience and remove these items without liability to you, the landlord, or any other third party for trespass or any other claim.
You must reimburse our costs of doing so;
- (4) you must at your own cost and without any payment from us for such items, at our option, deliver to us, make available to us for pick-up, or destroy, in any case within thirty (30) days after the De-identification Date, all materials that are proprietary to the 7 BREW Store brand.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, a franchisee is responsible for covering the costs associated with de-identifying a 7 Brew store after termination or expiration of the franchise agreement. Specifically, the franchisee must handle the delivery, pick-up, or destruction of proprietary materials at their own expense, without any reimbursement from 7 Brew. This obligation extends to all signs, marketing materials, forms, and other materials containing any 7 Brew mark, as well as all materials that are proprietary to the 7 Brew brand. These actions must be completed within 20 to 30 days after the De-identification Date. The De-identification Date is defined as the date the franchise agreement terminates or expires.
This requirement places a financial burden on the franchisee, as they must budget for these expenses when exiting the 7 Brew system. The FDD stipulates that if a franchisee fails to voluntarily comply with the de-identification requirements, 7 Brew has the right to enter the store and remove these items. In such cases, the franchisee is responsible for reimbursing 7 Brew's costs for the removal. This reinforces the franchisee's financial responsibility for de-identification, even when 7 Brew has to intervene.
Franchisees are also responsible for altering the store's appearance to clearly differentiate it from its former branding and other 7 Brew locations, again at their own expense. Additionally, they must notify the telephone company and directory publishers about the termination of their right to use any phone numbers or listings associated with 7 Brew. These measures are designed to prevent public confusion and protect 7 Brew's brand identity after a franchise agreement ends. The franchisee receives no compensation for these alterations.
Overall, the financial responsibility for de-identifying a 7 Brew store falls entirely on the franchisee. This includes the costs of removing branded materials, altering the store's appearance, and notifying relevant parties about the termination of the franchise. Prospective franchisees should carefully consider these potential expenses when evaluating the 7 Brew franchise opportunity, as these costs can impact their overall profitability and exit strategy.