Are 7 Brew's policies binding as part of the franchise agreement?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
formation we provide (in the Operations Manual or otherwise) concerning employment-related policies or procedures, or relating to employment terms and conditions for Store employees, is only a recommendation, and not a requirement, for your optional use.
As described in Section 7.A above, we have the right periodically to modify and supplement Brand Standards, which may require you to invest additional capital in the Store and incur higher operating costs. Those Brand Standards will constitute legally-binding obligations on you when we communicate them. Although we retain the right to establish and modify periodically the Brand Standards you have agreed to follow, you retain complete responsibility and authority for the Store's management and operation and for implementing and maintaining Brand Standards at the Store.
You acknowledge the importance of operating the Store in full compliance with this Agreement and Brand Standards. You further acknowledge that your deviation from any contractual requirement, including any Brand Standard, is a violation of this Agreement and will trigger incalculable administrative and management costs for us to address the violation (separate and apart from any damages your violation might cause to the Franchise System, our business opportunities, or the goodwill associated with the Marks).
D. Approved Products, Services, and Suppliers
(1) We may periodically designate and approve Brand Standards, manufacturers, suppliers, and/or distributors for the Operating Assets, products, and services we periodically authorize 7 BREW Stores to use or sell.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the Brand Standards that 7 Brew establishes and modifies periodically are legally binding obligations on the franchisee once communicated. These Brand Standards may require franchisees to invest additional capital in the store and incur higher operating costs. Franchisees acknowledge the importance of operating their store in full compliance with the franchise agreement and Brand Standards. Deviation from any contractual requirement, including any Brand Standard, constitutes a violation of the agreement.
While 7 Brew retains the right to establish and modify Brand Standards, the franchisee retains complete responsibility and authority for the store's management and operation, including implementing and maintaining these standards. This means that while 7 Brew sets the rules, the franchisee is in charge of making sure the store follows them.
7 Brew also has the right to vary Brand Standards or other aspects of the Franchise System for any franchisee as they deem best according to their business judgment. However, franchisees do not have the right to require 7 Brew to grant them a similar variation or accommodation. 7 Brew also retains the right to develop, operate, and change the Franchise System in any manner the Agreement does not specifically prohibit.