Is 7 Brew obligated to protect or defend its copyrights?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not actually know of any infringing uses of our copyrights that could materially affect your using them in any state. We need not protect or defend copyrights, although we intend to do so if in the system's best interests. We have the right to control any action we choose to bring, even if you voluntarily bring the matter to our attention. You must follow any instructions we give you. We need not participate in your defense of and/or indemnify you for damages or expenses incurred in a copyright proceeding.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 51–52)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, 7 Brew is not obligated to protect or defend its copyrights, though it intends to do so if it is in the best interest of the 7 Brew system. 7 Brew retains the right to control any legal action it chooses to pursue, even if a franchisee brings the matter to their attention. Franchisees must adhere to any instructions 7 Brew provides regarding copyright matters.
This means that while 7 Brew owns the copyrights to its Operations Manual, store designs, signage, and marketing materials, they are not legally bound to take action against copyright infringement. As a franchisee, you must report any potential infringement to 7 Brew, but the decision to pursue legal action rests solely with them. This could present a risk to franchisees if 7 Brew chooses not to defend its copyrights, potentially leading to brand dilution or unfair competition.
Furthermore, 7 Brew is not required to participate in a franchisee's defense or provide indemnity for damages or expenses incurred in a copyright proceeding. This means that if a franchisee is accused of copyright infringement related to the operation of their 7 Brew store, they will be responsible for their own legal defense and any associated costs. This is a notable point for prospective franchisees to consider, as it highlights the importance of adhering strictly to 7 Brew's guidelines and obtaining necessary approvals for any marketing or operational materials.
In the franchise industry, it is common for franchisors to actively protect their intellectual property. However, the 7 Brew franchise agreement gives 7 Brew discretion over whether or not to defend its copyrights. Prospective franchisees should discuss with 7 Brew what specific circumstances would trigger 7 Brew to take action to protect its copyrights and what support the franchisor would provide to a franchisee in the event of a copyright dispute.