Does 7 Brew reimburse franchisees for costs incurred in participating in gift/loyalty/stored-value card programs?

According to 7 Brew's 2025 Franchise Disclosure Document, franchisees are required to participate in the company's gift/loyalty/stored-value card and other customer loyalty programs. 7 Brew may deduct from the franchisee's bank account all monies paid to them for these programs and hold the funds until the cards are redeemed at any 7 Brew location. 7 Brew may also keep any prepaid amounts not used by customers, if legally permissible.

However, 7 Brew is under no obligation to reimburse franchisees for any costs incurred while participating in these loyalty programs. This includes the cost of providing products or services to customers without direct compensation as part of the loyalty program.

This lack of reimbursement could impact a franchisee's profitability, as they will need to factor in the costs of providing discounts or free items/services through the loyalty program without expecting compensation from 7 Brew. Prospective franchisees should carefully consider these potential costs and how they might affect their bottom line. It is important to fully understand the terms and conditions of the loyalty programs and to evaluate the potential financial impact on the franchise.