On what page of the 7 Brew Franchise Agreement can I find information about the Technology Fee?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
We reserve the right to modify our policies and practices regarding revenue recognition, revenue reporting, and the inclusion or exclusion of certain revenue from "Gross Sales" as circumstances, business practices, and technology change.
C. Technology Fee
Upon thirty (30) days' prior written notice to you, you agree to begin paying us a weekly technology fee ("Tech Fees") in the amount we periodically specify, but not to exceed one-quarter percent (0.25%) of the Store's weekly Gross Sales. The weekly Tech Fee is due and payable at the same time and in the same manner as the Royalty, unless we otherwise specify. 7 BREW Stores that we and our affiliates own will pay the Tech Fees on the same percentage basis as franchisees. We will use Tech Fees to fund the technology expenditures we deem best for the Franchise System (as well as affiliated 7 BREW Stores), including, without limitation, mobile training and operational performance software, cloud-based franchise-management solutions, IT phone support and database maintenance, Digital Marketing, online ordering and loyalty subscriptions, iPad mobile device management, and e-learning solutions.
We may allocate and spend Tech Fees in our sole judgment, including for salaries, wages, and benefits, direct technology program costs, and overhead expenses for the activities described above. Despite payment of the Tech Fees to us, you must pay third-party vendors for the costs of and support services for your Store's Computer System. We have no obligation to account to you or other franchisees for our use of Tech Fees or to ensure that you or the Store benefits directly or pro rata based on your payments of Tech Fees.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to the 2025 7 Brew Franchise Disclosure Document, details regarding the Technology Fee can be found on page 99 of the Franchise Agreement. Specifically, Section C of Item 22 discusses the Technology Fee.
The agreement states that 7 Brew can implement a weekly Technology Fee, providing 30 days' written notice to the franchisee. This fee will not exceed 0.25% of the store's weekly Gross Sales. The Technology Fee is due at the same time as the Royalty payment unless specified otherwise. Notably, 7 Brew-owned stores also pay this fee on the same percentage basis as franchisees.
7 Brew specifies that these Technology Fees will fund technology expenditures deemed beneficial for the entire 7 Brew Franchise System, including affiliated stores. These expenditures may include mobile training, operational performance software, cloud-based franchise management solutions, IT support, database maintenance, digital marketing, online ordering, loyalty subscriptions, iPad mobile device management, and e-learning solutions. 7 Brew retains the right to allocate these fees at its discretion, covering salaries, wages, benefits, direct technology program costs, and overhead expenses.
It's important to note that franchisees are still responsible for paying third-party vendors for the costs and support services related to their store's computer system, even with the Technology Fee. 7 Brew has no obligation to account for how the Technology Fees are used or to ensure that individual franchisees directly benefit from their payments. This means that while franchisees contribute to the technology fund, the benefits they receive may not be directly proportional to their payments, and 7 Brew has significant discretion in how these funds are spent.