What is the franchisee's obligation regarding changes in mandatory Brand Standards for 7 Brew?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
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).
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to the 2025 FDD, 7 Brew franchisees must comply with all Brand Standards, even as 7 Brew periodically modifies them. Franchisees must operate their stores as if these changes are part of the franchise agreement. Franchisees cannot offer products or services that are not authorized in the Operations Manual, and they must offer all products and services that 7 Brew prescribes. These offerings may change from time to time and from market to market.
Brand Standards can affect any aspect of the store's operation and maintenance that is material to the goodwill associated with the 7 Brew marks and franchise system. While 7 Brew retains the right to issue and modify Brand Standards, the franchisee is responsible for the day-to-day control of the store's operation and compliance with Brand Standards.
7 Brew also reserves the right to vary Brand Standards or other aspects of the Franchise System for any franchisee as it deems best according to its business judgment. However, the franchisee has no right to require 7 Brew to grant a similar variation or accommodation. 7 Brew can also develop, operate, and change the Franchise System in any manner the agreement does not specifically prohibit.