What are the principal purposes of the 7 Brew Brand Fund?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
- (5) The Brand Fund's principal purposes are to maximize recognition of the Marks, increase patronage of 7 BREW Stores, and enhance, promote, and protect the 7 BREW Store brand and Franchise System.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the principal purposes of the Brand Fund are to maximize recognition of the Marks, increase patronage of 7 Brew stores, and enhance, promote, and protect the 7 Brew store brand and Franchise System. The Brand Fund is established for advertising, marketing, research and development, public relations, Social-Media management, lead-generation, customer-relationship-management, and technology programs, materials, and activities.
7 Brew franchisees are required to contribute to the Brand Fund. These contributions cannot exceed two percent of the store's weekly gross sales. The funds are used to develop and implement marketing materials and programs that benefit all 7 Brew stores. However, 7 Brew does not guarantee that the expenditures in any specific geographic area will be proportionate to the contributions from stores in that area, nor that any store will directly benefit in proportion to its contribution.
The Brand Fund will not be used primarily to solicit new franchisees, though materials may reference the franchise program and process franchise leads. 7 Brew has the right to collect unpaid Brand Fund contributions, including through legal proceedings, and may also forgive or settle claims related to the fund. 7 Brew will provide an annual, unaudited statement of the Brand Fund's collections and expenses within 60 days after the fiscal year-end.
7 Brew maintains sole control over the Brand Fund's activities and is not obligated to ensure proportional benefits to franchisees based on their contributions. This arrangement is typical in franchising, where brand-building efforts are often centralized and franchisees contribute to a common fund for system-wide marketing and advertising. Franchisees should recognize that while they contribute to the fund, the direct benefits they receive may vary.