Is 7 Brew required to have the Brand Fund audited annually?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
We will prepare an annual, unaudited statement of Brand Fund collections and expenses and share the statement electronically within sixty (60) days after our fiscal-year end or otherwise give you a copy of the statement upon reasonable request.
We may (but need not) have the Brand Fund audited annually, at the Brand Fund's expense, by a certified public accountant we designate.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, 7 Brew is not required to have the Brand Fund audited annually. While 7 Brew will prepare an annual, unaudited statement of Brand Fund collections and expenses, they "may (but need not) have the Brand Fund audited annually, at the Brand Fund's expense, by a certified public accountant we designate." This statement will be shared electronically within sixty days after the fiscal year end or provided upon reasonable request.
This means that as a 7 Brew franchisee, you will receive an unaudited statement of the Brand Fund's financial activity each year. However, there is no guarantee that a certified public accountant will conduct a formal audit to verify the accuracy of these statements.
While an audit provides greater assurance of financial accuracy, the FDD indicates that 7 Brew retains the discretion to decide whether or not to conduct one. If an audit is performed, the expense is borne by the Brand Fund, which is funded by franchisee contributions. Prospective franchisees may want to inquire about the frequency with which 7 Brew has chosen to conduct audits in the past to better understand their financial oversight practices.