Who is responsible for the Replacement Managing Owner's compensation and TRE (travel-related expenses) during training for a 7 Brew franchise?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
If you want or need to change the individual designated as the Managing Owner, you must appoint a new individual owner (the "Replacement Managing Owner") for that role—in order to protect our brand—within thirty (30) days after the former Managing Owner no longer occupies that position. The Replacement Managing Owner may attend our Initial Training. You are responsible for the Replacement Managing Owner's compensation and TRE during all training. As used in this Agreement, "TRE" means travel-related expenses of our or your personnel, as applicable. In the case of our personnel, TRE includes coach or economy airfare, local transportation (including airport transfers), accommodations in a facility subject to our approval, meals, and a daily allowance (paid weekly) upon which we and you agree for reasonable miscellaneous expenses.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the franchisee is responsible for the Replacement Managing Owner's compensation and travel-related expenses (TRE) during all training.
Specifically, if the franchisee needs to replace the Managing Owner, the Replacement Managing Owner may attend 7 Brew's Initial Training program. The franchisee bears the costs associated with this training, including the Replacement Managing Owner's compensation and TRE. TRE is defined as travel-related expenses of personnel, including coach or economy airfare, local transportation (including airport transfers), accommodations in a facility subject to 7 Brew's approval, meals, and a daily allowance.
This means that a 7 Brew franchisee should factor in the potential costs of training a Replacement Managing Owner, including their salary or wages during the training period, plus all travel-related costs. This could represent a significant expense, especially if the training location is far from the franchise location or if the training period is extensive. Franchisees should discuss the typical duration and location of training with 7 Brew to estimate these potential costs accurately.