If 7 Brew debits an amount greater than what is owed, how is the excess handled?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding any designation you make, we may apply any of your payments (whether made by debit or otherwise) to any of your past due indebtedness to us or our affiliates relating to this Agreement or the Store. We may set off any amounts you or your owners owe us or our affiliates against any amounts that we or our affiliates owe you or your owners, whether in connection with this Agreement or otherwise.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for 7 Brew addresses how payments are applied, but it does not specifically state how an overpayment or excess debit would be handled. However, the FDD does state that 7 Brew has the right to apply any payments made by a franchisee to any past due indebtedness owed to 7 Brew or its affiliates. This implies that if a franchisee overpays, 7 Brew could apply the excess to any outstanding balances.
Additionally, 7 Brew has the right to set off any amounts owed to the franchisee against any amounts the franchisee owes to 7 Brew or its affiliates. This suggests that if an overpayment occurs, 7 Brew could potentially credit the franchisee's account or offset it against future fees or other obligations.
Because the FDD does not explicitly detail the procedure for handling overpayments, it would be prudent for a prospective 7 Brew franchisee to seek clarification from the franchisor regarding their specific policies on this matter. Understanding how overpayments are reconciled and whether refunds are issued or credits are applied is essential for maintaining accurate financial records and ensuring fair business practices.