How often can 7 Brew implement an Annual Increase to fixed fees?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to increase any fixed fee, fixed payment, or fixed amount (i.e., not stated as a percentage) under the Franchise Agreement based on changes in the Index (defined below) ("Annual Increase").
An Annual Increase may occur only once per calendar year and may not exceed the corresponding cumulative increase in the Index since the Franchise Agreement's effective date or, as the case may be, since the date on which the last Annual Increase became effective for the particular fixed fee, payment, or amount being increased.
Any and all Annual Increases will be made during the same month during each calendar year. "Index" refers to the Consumer Price Index for All Urban Consumers (CPI-U) for the U.S. City Average, All Items (1982 – 1984 = 100), not seasonally adjusted, as published by the United States Department of Labor, Bureau of Labor Statistics, or in a successor index.
We also have the right—if any fixed fee, payment, or amount due from you under the Franchise Agreement encompasses any third-party charges we collect from you on a pass-through basis (i.e., for ultimate payment to the third party)—to increase the fixed fee, payment, or amount beyond the Annual Increase to reflect increases in the third party's charges to us (we do not expect these increases in the third party's charges to be on account of benefits we receive from the third party).
Source: Item 6 — OTHER FEES (FDD pages 16–23)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, 7 Brew has the right to implement an Annual Increase to any fixed fee, fixed payment, or fixed amount detailed in the Franchise Agreement. This increase is tied to changes in the Consumer Price Index for All Urban Consumers (CPI-U).
7 Brew is limited to implementing an Annual Increase only once per calendar year. The amount of the increase cannot exceed the cumulative increase in the CPI-U since the Franchise Agreement's effective date, or since the date of the last Annual Increase for the specific fee in question.
All Annual Increases must be made during the same month each calendar year. This provides franchisees with a predictable schedule for when these adjustments may occur. The Index used to calculate the increase is the CPI-U for the U.S. City Average, All Items (1982 – 1984 = 100), not seasonally adjusted, as published by the United States Department of Labor, Bureau of Labor Statistics, or a successor index.
7 Brew also retains the right to increase fixed fees beyond the Annual Increase to reflect any increases in third-party charges that they pass on to franchisees. These additional increases are not expected to be related to any benefits 7 Brew receives from the third party.