When does ownership and title to the Unit pass to the Owner for a 7 Brew franchise?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
promptly and in accordance with Owner's reasonable requirements, Owner may cause such defect to be repaired or replaced and Manufacturer shall reimburse Owner for the reasonable costs and expenses incurred by Owner related thereto.
(d) EXCEPT AS OTHERWISE EXPLICITLY SET FORTH IN THIS AGREEMENT, OWNER ACKNOWLEDGES THAT THE UNIT SOLD HEREUNDER IS PURCHASED BY THE OWNER IN ITS "AS IS, WHERE IS" CONDITION AT THE MANUFACTURING SITE AND MANUFACTURER IS NOT PROVIDING ANY WARRANTY FOR THE UNIT INCLUDING, BUT NOT LIMITED TO, AN IMPLIED WARRANTY THAT THE UNIT IS OF MERCHANTIBLE QUALITY OR THAT THE UNIT CAN BE USED FOR ANY PARTICULAR PURPOSE.
ARTICLE 7 TRANSFER OF OWNERSHIP; SHIPMENT; INSTALLATION
Until title to the Unit passes to Owner, the risk of loss with respect to the Unit will remain with Manufacturer. Ownership and title to the Unit will pass to Owner when the Unit leaves Manufacturer's Site.
Owner shall be responsible for any and all freight, shipment, and insurance charges associated with shipment of the Unit to be delivered under this Agreement; provided, however, Manufacturer's personnel will load the Unit onto the freight carrier's vehicle at the Manufacturing Site. Shipment of the Unit under this Agreement shall be F.O.B. Shipping Point. The "Shipping Point" shall be the Manufacturing Site. Title and risk of loss for the Unit shall pass from Manufacturer to Owner F.O.B. Shipping Point.
Owner shall coordinate, supply and pay for, at its sole cost, expense and liability, all equipment and labor required for the unloading, transportation, delivery, and installation of the Unit and any related equipment, fixtures, plumbing, electrical, heating or air systems, and other items related to operation of Owner's business (collectively, the "Installation Services"). Owner, or it
Source: Item 23 — RECEIPTS (FDD pages 83–279)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the ownership and title to the Unit transfers to the Owner when the Unit leaves the Manufacturer's Site. The risk of loss remains with the Manufacturer until the title is transferred. The shipment is designated as F.O.B. (Free On Board) Shipping Point, where the Shipping Point is the Manufacturing Site. This means that the Owner assumes responsibility for the Unit once it leaves the Manufacturer's location.
Following the transfer of ownership, the franchisee is responsible for all freight, shipment, and insurance charges associated with the delivery of the Unit. 7 Brew personnel will load the Unit onto the freight carrier's vehicle at the Manufacturing Site, but the franchisee must coordinate, supply, and pay for all equipment and labor for unloading, transportation, delivery, and installation. This includes any related equipment, fixtures, plumbing, electrical, heating, or air systems necessary for the operation of the 7 Brew business.
If the franchisee cannot transport the Unit within 30 days of the Completion Date, 7 Brew's Manufacturer will store the Unit at the Manufacturing Site or another secure facility. A Storage Fee of $1,000 per day will be charged for a maximum of ten days. If the Unit is not transported after this ten-day period, the Manufacturer has the right to sell the Unit to another party. In this case, the Manufacturer will either refund the original franchisee's Purchase Price or apply it to another Unit available for shipment within 30 days of the Completion Date. The franchisee must pay all Storage Fee amounts in addition to the Purchase Price via wire transfer.