factual

What is the manner of payment for the 7 Brew Brand Fund contribution?

7_Brew Franchise · 2025 FDD

Answer from 2025 FDD Document

You agree to contribute to the Brand Fund the amounts we periodically specify, not to exceed two percent (2.0%) of the Store's weekly Gross Sales. Your Brand Fund contribution is due and payable at the same time and in the same manner as the Royalty or in such other manner we periodically specify. 7 BREW Stores that we and our affiliates own will contribute to the Brand Fund on the same percentage basis as franchisees.

Source: Item 22 — CONTRACTS (FDD pages 82–83)

What This Means (2025 FDD)

According to 7 Brew's 2025 Franchise Disclosure Document, franchisees are required to contribute to the Brand Fund, with contributions not exceeding two percent of the store's weekly gross sales. The Brand Fund is used for advertising, marketing, research and development, and other activities to promote the 7 Brew brand.

The Brand Fund contribution is due and payable at the same time and in the same manner as the Royalty fee, unless 7 Brew specifies otherwise. This means that franchisees will typically make payments for both the royalty and the Brand Fund contribution simultaneously, streamlining the payment process. The FDD does not specify the exact method of payment, but it can be inferred that the payment methods would be the same as those accepted for royalty payments.

It is important to note that 7 Brew has the right to modify the payment terms for the Brand Fund contribution, providing franchisees with written notice of any changes. Franchisees should clarify with 7 Brew the accepted methods of payment for both the royalty and Brand Fund contributions to ensure compliance and avoid any late payment penalties. Additionally, 7 Brew stores owned by 7 Brew and its affiliates contribute to the Brand Fund on the same percentage basis as franchisees, ensuring alignment in contributing to the brand's marketing and advertising efforts.

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.