Does 7 Brew have the right to institute national promotions in which all 7 Brew stores must participate?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
Brand Standards may regulate (to the extent that federal and state antitrust laws allow) price advertising
policies and maximum, minimum, or other pricing requirements for products and services the Store sells, including requirements for national, regional, and local promotions, special offers, and discounts in which some or all 7 BREW Stores must participate. While we currently recommend the prices that your Store should charge for its various products, we have not at this time mandated specific product price levels for 7 BREW Stores in any particular geographic areas or instituted national, regional, and local promotions, special offers, and discounts in which all 7 BREW Stores must participate.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 53–54)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, 7 Brew has the right to institute national, regional, and local promotions, special offers, and discounts in which some or all 7 Brew stores must participate. Brand Standards may regulate price advertising policies and maximum, minimum, or other pricing requirements for products and services the Store sells, including requirements for national, regional, and local promotions, special offers, and discounts in which some or all 7 Brew Stores must participate. Currently, 7 Brew recommends the prices that stores should charge for products, but has not mandated specific product price levels or instituted mandatory national, regional, and local promotions.
This means that as a 7 Brew franchisee, you may be required to participate in promotions or offer discounts as determined by the franchisor. While 7 Brew currently recommends pricing, they retain the right to mandate specific price levels and promotional participation in the future. Franchisees must adhere to these requirements to the maximum extent the law allows.
This policy is fairly common in franchising, as it allows the franchisor to maintain brand consistency and implement marketing strategies across the entire system. However, it's important for prospective franchisees to understand that they may have limited control over pricing and promotions, and should factor this into their financial projections. Franchisees should also be aware that changes in Brand Standards may require additional capital investment or higher operating costs.