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If 7 Brew believes it is advisable to modify a Mark, must the franchisee comply with 7 Brew's directions?

7_Brew Franchise · 2025 FDD

Answer from 2025 FDD Document

If we believe at any time that it is advisable for us and/or you to modify, discontinue using, and/or replace any Mark, and/or to use one or more additional or substitute trademarks or service marks, you must comply with our directions within a reasonable time after receiving notice. We need not reimburse your expenses to comply with those directions (such as your costs to change signs or replace supplies for the Store), any loss of revenue due to any modified or discontinued Mark, or your expenses to promote a modified or substitute trademark or service mark.

Source: Item 13 — TRADEMARKS (FDD pages 49–51)

What This Means (2025 FDD)

According to 7 Brew's 2025 Franchise Disclosure Document, franchisees must comply with 7 Brew's directions regarding modifications, discontinuations, or replacements of any Mark. This requirement extends to using additional or substitute trademarks or service marks. Franchisees are obligated to comply within a reasonable time frame after receiving notice from 7 Brew.

This compliance, however, does not obligate 7 Brew to reimburse franchisees for any expenses incurred. These non-reimbursable expenses include costs associated with changing signs, replacing supplies for the store, any loss of revenue resulting from a modified or discontinued Mark, or the costs to promote a modified or substitute trademark or service mark. This allocation of responsibility places the financial burden of trademark changes squarely on the franchisee.

This requirement is typical in franchising, as maintaining brand consistency and adapting to market changes are crucial for the overall success of the franchise system. While franchisees bear the costs, the franchisor makes these decisions in what they believe is the best interest of the brand. Prospective franchisees should carefully consider these potential expenses and factor them into their financial planning. It would be prudent to inquire with 7 Brew about the frequency and potential costs associated with such changes to better prepare for these scenarios.

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.