What is the initial term of the Trademarks, Copyrights, and Trade Secret License Agreement for 7 Brew?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
Brew Culture, LLC licenses us to use these Marks and related intellectual property, and to authorize franchisees to use them in operating 7 BREW Stores, under a Trademarks, Copyrights, and Trade Secret License Agreement effective March 15, 2021 (the "License Agreement"). The License Agreement's initial term is 20 years; we have the right to renew the License Agreement for 3 successive 10-year terms. We have the right to terminate the License Agreement at any time. Brew Culture, LLC may terminate the License Agreement immediately if we breach the License Agreement and fail to cure the breach within 30 days after receiving written notice from Brew Culture, LLC. When the License Agreement terminates or expires, we must stop using and sublicensing the Marks and related intellectual property. However, any 7 BREW Store franchisee that has been authorized to use the Marks in its franchise may continue using the Marks until that franchisee's franchise agreement, and any permitted successor franchise agreement, expire or are terminated, but only if the franchisee continues to comply with its obligations in the franchise agreement and any permitted successor franchise agreement during their remaining terms. No other agreement limits our right to use or sublicense any Mark.
Source: Item 13 — TRADEMARKS (FDD pages 49–51)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the Trademarks, Copyrights, and Trade Secret License Agreement, effective March 15, 2021, has an initial term of 20 years. This agreement allows 7 Brew to use the specified Marks and related intellectual property, and to authorize franchisees to use them in operating 7 Brew stores. After the initial 20-year term, 7 Brew has the right to renew the License Agreement for three successive 10-year terms, potentially extending the agreement for up to 50 years.
7 Brew also retains the right to terminate the License Agreement at any time, providing flexibility for the company. However, Brew Culture, LLC, the licensor, can terminate the agreement immediately if 7 Brew breaches the agreement and fails to rectify the breach within 30 days of receiving written notice. Upon termination or expiration of the License Agreement, 7 Brew must cease using and sublicensing the Marks and related intellectual property.
An important provision protects existing franchisees: any 7 Brew Store franchisee authorized to use the Marks can continue to do so until their franchise agreement (and any permitted successor agreement) expires or is terminated. This continuation is contingent upon the franchisee's compliance with their obligations under the franchise agreement during its remaining term. This clause ensures that franchisees are not immediately impacted by the termination or expiration of the overarching License Agreement between 7 Brew and Brew Culture, LLC.
This arrangement is fairly typical in franchising, where the franchisor licenses trademarks and intellectual property to its franchisees. The initial term and renewal options provide a framework for the ongoing use of these assets, while termination clauses protect the interests of both parties. The clause allowing franchisees to continue using the marks under certain conditions is a beneficial provision for franchisees, offering some security in the event of changes at the franchisor level.