What happens to interest earned on 7 Brew Brand Fund contributions?

According to 7 Brew's 2025 Franchise Disclosure Document, all interest earned on Brand Fund contributions will be used to pay costs before using the Brand Fund's other assets. This means that any interest accrued from the pooled contributions of franchisees and company-owned stores into the Brand Fund will be the first source of money used to cover expenses related to the Brand Fund's activities.

This policy benefits 7 Brew franchisees because it ensures that the principal contributions to the Brand Fund are preserved as much as possible. By prioritizing the use of interest income, 7 Brew aims to maximize the impact of the Brand Fund on marketing, advertising, and other brand-related activities. This can potentially lead to more effective campaigns and initiatives that drive customer traffic and increase brand recognition for all 7 Brew locations.

It's important to note that while the interest earned is earmarked for cost coverage, the Brand Fund itself is not a trust, and 7 Brew does not owe franchisees any fiduciary obligations in its management. 7 Brew has the discretion to spend more or less than the total contributions in any given year, borrow funds, invest surplus amounts, and carry over unspent funds to future periods. This provides 7 Brew with flexibility in managing the Brand Fund to achieve its objectives of enhancing and protecting the 7 Brew brand.