What is the procedure for a 7 Brew franchisee to issue or redeem coupons or gift/loyalty/stored-value cards?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
Revenue from gift/loyalty/stored-value cards and similar items we approve for sale at 7 BREW Stores is included in Gross Sales when the card or other item is used to pay for products and services. Your Store may not issue or redeem any coupons or gift/loyalty/stored-value or similar cards unless we first approve in writing their form and content and your proposed issuing and honoring/redemption procedures. We have the right to grant or withhold our approval as we deem best.
Source: Item 6 — OTHER FEES (FDD pages 16–23)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, franchisees must obtain written approval from 7 Brew regarding the form, content, and procedures for issuing and redeeming coupons, gift cards, loyalty cards, and stored-value cards. 7 Brew retains the right to grant or withhold this approval at its discretion.
This requirement ensures that all promotional and payment mechanisms align with 7 Brew's brand standards and operational policies. It allows 7 Brew to maintain control over marketing strategies and financial transactions across all franchise locations.
For a prospective franchisee, this means that any plans to implement local promotions or alternative payment methods must be submitted to 7 Brew for review and approval. Franchisees cannot independently introduce such programs without explicit authorization. This is a fairly standard practice in franchising, as it protects brand uniformity and prevents unauthorized financial liabilities.
Furthermore, the FDD states that revenue from gift/loyalty/stored-value cards and similar items is included in Gross Sales when the card or other item is used to pay for products and services. This is relevant for royalty calculations, as royalties are based on a percentage of Gross Sales.