When is the 7 Brew Product and Service Purchases fee due?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Column 1 | Column 2 | Column 3 | Column 4 |
|---|---|---|---|
| Type of Fee(1, 6) Annual Meeting / Convention | Amount(2) Will vary under circumstances (not to exceed $1,000 per person; does not include your actual out-of-pocket | Due Date As incurred | Remarks You (or your designated representative we approve) may attend an annual franchisee meeting, in which case you must pay an attendance fee. |
| Product and Service Purchases | attendance costs paid to third parties) Varies depending on products and services you buy from us or our affiliates | As incurred | During the franchise term, you must buy certain products and services from us or our affiliates, from designated or approved distributors and suppliers, or according to our standards and specifications. If we require you to buy any products or services from us or our affiliates, we will give you a price list identifying |
| Payments for Amounts Due to Third-Party Vendors | Depends on amounts charged by third-party vendors | Due by Friday after the end of each calendar-week period (each calendar week currently begins on Monday and ends on Sunday)(4) | the applicable costs. We expect to negotiate (from time to time) single-payer agreements with third-party vendors of various technology and other services and products (to achieve greater discounts and/or economies of scale for franchisees) where the third party vendors will require us or our affiliate to sign the particular license/supply/service agreement and to be directly responsible for paying for the services or products. In that case, we or our affiliate will collect the applicable amounts from our franchisees on a pro rata or other basis to reimburse us or our affiliate for the payments we must make to the vendors on the franchisees' behalf. While we do not currently plan to charge an administrative fee for our involvement, we have the right to charge you an administrative fee equal to 10% of each payment we collect |
Source: Item 6 — OTHER FEES (FDD pages 16–23)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the Product and Service Purchases fee is due as incurred. This means that the fee is payable at the time the franchisee incurs the cost of purchasing products and services from 7 Brew or its affiliates.
During the franchise term, franchisees are required to buy certain products and services from 7 Brew or their affiliates, or from designated or approved distributors and suppliers, or according to their standards and specifications. If 7 Brew requires franchisees to buy any products or services from them or their affiliates, they will provide a price list identifying the applicable costs.
7 Brew also expects to negotiate single-payer agreements with third-party vendors for various technology and other services and products to achieve greater discounts and/or economies of scale for franchisees. In these cases, 7 Brew or its affiliate will sign the particular license/supply/service agreement and be directly responsible for paying for the services or products. Then, 7 Brew or its affiliate will collect the applicable amounts from franchisees on a pro rata or other basis to reimburse them or their affiliate for the payments they must make to the vendors on the franchisees' behalf. While 7 Brew does not currently plan to charge an administrative fee for their involvement, they have the right to charge franchisees an administrative fee equal to 10% of each payment they collect from them.