Can 7 Brew modify its policies regarding revenue recognition and Gross Sales inclusions/exclusions?

According to 7 Brew's 2025 Franchise Disclosure Document, 7 Brew retains the right to modify its policies regarding revenue recognition, revenue reporting, and what is included or excluded from the definition of "Gross Sales." This flexibility allows 7 Brew to adapt to changing circumstances, business practices, and technological advancements.

For a prospective franchisee, this means that the way Gross Sales are calculated, and therefore the royalties owed, could change over the term of the franchise agreement. While the initial definition of Gross Sales is provided, 7 Brew has the discretion to alter this definition.

It is important for a potential 7 Brew franchisee to understand that these changes could impact the amount of royalties they pay. While such modifications are framed as responses to changing business conditions, franchisees should seek clarification on how frequently these changes are made and what types of changes are most likely to occur. Understanding the potential scope of these modifications is crucial for accurately forecasting expenses and profitability.