What is the purpose of the 7 Brew Brand Fund?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
hat any violation of the terms of this Section or Section 19.E was accompanied by the misappropriation and inevitable disclosure of Confidential Information and constitutes a deceptive and unfair trade practice and unfair competition.
13. Advertising and Marketing
A. Brand Fund
- (1) We have established a fund ("Brand Fund" or "Fund") for advertising, marketing, research and development, public relations, Social-Media management, lead-generation, customer-relationship-management, and technology programs, materials, and activities, the purpose of which is to enhance, promote, and protect the 7 BREW Store brand and Franchise System. You agree to contribute to the Brand Fund the amounts we periodically specify, not to exceed two percent (2.0%) of the Store's weekly Gross Sales. Your Brand Fund contribution is due and payable at the same time and in the same manner as the Royalty or in such other manner we periodically specify.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the Brand Fund's primary goals are to enhance brand recognition, boost customer traffic to 7 Brew stores, and strengthen the overall 7 Brew brand and franchise system. The fund is used for advertising, marketing, research and development, public relations, social media management, lead generation, customer relationship management, and technology programs. Franchisees contribute a percentage of their weekly gross sales, up to 2.0%, to the Brand Fund.
7 Brew manages the Brand Fund and has control over its creative and business operations. The fund can be used for various activities, including creating marketing materials, digital marketing, social media, website development, and local and national advertising campaigns. It can also cover the costs of advisors, promotions, partnerships, spokespersons, customer interaction systems, market research, and technology initiatives like mobile training software and online ordering systems.
The Brand Fund is accounted for separately from 7 Brew's other funds, though contributions don't necessarily need to be kept in a separate bank account. The fund can reimburse 7 Brew and its affiliates for expenses related to managing the fund, such as salaries, administrative costs, travel, and overhead. The Brand Fund isn't a trust, and 7 Brew doesn't have fiduciary obligations related to it.
7 Brew can modify or suspend Brand Fund contributions and operations, and even terminate the Brand Fund altogether. If terminated, the remaining funds will either be spent on approved programs or distributed to franchisees and 7 Brew based on their contributions over the previous year. 7 Brew aims to use the Brand Fund to benefit all 7 Brew stores, but it doesn't guarantee that expenditures in any area will be proportional to the contributions from stores in that area.