Who is responsible for freight, shipment, and insurance charges associated with the shipment of the Unit for a 7 Brew franchise?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
by Owner related thereto.
(d) EXCEPT AS OTHERWISE EXPLICITLY SET FORTH IN THIS AGREEMENT, OWNER ACKNOWLEDGES THAT THE UNIT SOLD HEREUNDER IS PURCHASED BY THE OWNER IN ITS "AS IS, WHERE IS" CONDITION AT THE MANUFACTURING SITE AND MANUFACTURER IS NOT PROVIDING ANY WARRANTY FOR THE UNIT INCLUDING, BUT NOT LIMITED TO, AN IMPLIED WARRANTY THAT THE UNIT IS OF MERCHANTIBLE QUALITY OR THAT THE UNIT CAN BE USED FOR ANY PARTICULAR PURPOSE.
ARTICLE 7 TRANSFER OF OWNERSHIP; SHIPMENT; INSTALLATION
Until title to the Unit passes to Owner, the risk of loss with respect to the Unit will remain with Manufacturer. Ownership and title to the Unit will pass to Owner when the Unit leaves Manufacturer's Site.
Owner shall be responsible for any and all freight, shipment, and insurance charges associated with shipment of the Unit to be delivered under this Agreement; provided, however, Manufacturer's personnel will load the Unit onto the freight carrier's vehicle at the Manufacturing Site. Shipment of the Unit under this Agreement shall be F.O.B. Shipping Point. The "Shipping Point" shall be the Manufacturing Site. Title and risk of loss for the Unit shall pass from Manufacturer to Owner F.O.B. Shipping Point.
Owner shall coordinate, supply and pay for, at its sole cost, expense and liability, all equipment and labor required for the unloading, transportation, delivery, and installation of the Unit and any related equipment, fixtures, plumbing, electrical, heating or air systems, and other items related to operation of Owner's business (collectively, the "Installation Services"). Owner, or it
Source: Item 23 — RECEIPTS (FDD pages 83–279)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the franchisee, referred to as the 'Owner' in this context, is responsible for all costs associated with the shipment of the Unit. This includes freight, shipment, and insurance charges to transport the Unit from the Manufacturer's Site to the franchisee's location. The document specifies that the shipment is 'F.O.B. Shipping Point,' meaning that ownership and risk of loss transfer to the franchisee once the Unit leaves the Manufacturer's Site.
This arrangement places the onus on the 7 Brew franchisee to manage and pay for all aspects of shipping, including coordinating with freight carriers and securing appropriate insurance coverage during transit. The franchisee also bears the risk of any damage or loss that may occur during shipping. It is important for prospective franchisees to factor these potentially significant costs into their initial investment calculations.
Furthermore, the 7 Brew franchisee is responsible for the unloading, transportation, delivery, and installation of the Unit, including all related equipment, fixtures, plumbing, electrical, heating, and air systems. This encompasses all expenses and liabilities associated with these Installation Services. The franchisee must install the Unit according to the Installation Guide.
If the 7 Brew franchisee cannot transport the Unit within 30 days of the Completion Date, the Manufacturer will store the Unit at a cost of $1,000.00 per day, up to a maximum of ten days. After this period, the Manufacturer has the right to sell the Unit and either refund the Purchase Price or apply it to another Unit for the franchisee.