Regarding the 7 Brew franchise, which sections of the Franchise Agreement and DRR pertain to fees?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Section in agreement | Disclosure document item |
|---|---|---|
| f. Fees | 3.F, 4.A and C, 5, 6, 7.C, D, and E, 10, 13, 15, 16.C, 17, 18.C, 19.A and B, 20.C, D, and E, and 21.C of Franchise Agreement 3 and 5 of DRR 3 and 7 of Manufacturing Agreement | 5, 6, 7, and 8 |
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 32–34)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, Item 9 details the franchisee's obligations, including where to find more information regarding fees within the Franchise Agreement and DRR (Development Rights Rider).
Specifically, the sections of the Franchise Agreement that pertain to fees are 3.F, 4.A and C, 5, 6, 7.C, D, and E, 10, 13, 15, 16.C, 17, 18.C, 19.A and B, 20.C, D, and E, and 21.C. The sections of the DRR that pertain to fees are 3 and 5. Additionally, section 3 and 7 of the Manufacturing Agreement also pertain to fees. These sections should outline the various fees a franchisee is obligated to pay, such as initial franchise fees, royalties, advertising fees, and other ongoing costs.
Prospective franchisees should carefully review each of these sections within the Franchise Agreement, DRR, and Manufacturing Agreement to fully understand the fee structure and payment schedules associated with operating a 7 Brew franchise. Understanding these obligations is crucial for assessing the financial viability of the franchise and ensuring compliance with the franchise agreement.