factual

When is the 7 Brew franchisee's Brand Fund contribution due?

7_Brew Franchise · 2025 FDD

Answer from 2025 FDD Document

You agree to contribute to the Brand Fund the amounts we periodically specify, not to exceed two percent (2.0%) of the Store's weekly Gross Sales. Your Brand Fund contribution is due and payable at the same time and in the same manner as the Royalty or in such other manner we periodically specify.

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

What This Means (2025 FDD)

According to 7 Brew's 2025 Franchise Disclosure Document, franchisees are required to contribute to the Brand Fund, with contributions not exceeding two percent (2.0%) of the store's weekly Gross Sales. The Brand Fund is used for advertising, marketing, research and development, and other activities to promote the 7 Brew brand.

The Brand Fund contribution is due and payable at the same time and in the same manner as the Royalty or in such other manner 7 Brew periodically specifies. This means that franchisees must pay their Brand Fund contribution on the same schedule and using the same method as their royalty payments, unless 7 Brew provides alternative instructions.

This arrangement ensures that the Brand Fund receives consistent and timely funding, aligning it with the franchisee's revenue stream. Franchisees should clarify with 7 Brew the exact due dates and payment methods for both royalties and Brand Fund contributions to ensure compliance and avoid any late payment penalties. Understanding these payment terms is crucial for managing the financial obligations of the franchise.

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.