What is the role of Travelers Casualty and Surety Company of America in relation to 7 Brew?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
Based upon the franchisor's financial condition, the Maryland Securities Commissioner has required a financial assurance. Therefore, we have secured a surety bond in the amount of $850,000 from Travelers Casualty and Surety Company of America. A copy of the bond is on file at the Maryland Office of the Attorney General, Securities Division, 200 St. Paul Place, Baltimore, Maryland 21202.
To be attached and form a part of Bond No. 107883372 dated the 13th Day of October, 2023, executed by Travelers Casualty and Surety Company of America as surety, on behalf of Brew Culture Franchise, LLC as current principal of record, and in favor of State of Maryland, as Obligee for Franchisor Bond, and in the amount of Six Hundred Thousand Dollars and 00/100 ($600,000.00).
In consideration of the agreed premium charged for this bond, it is understood and agreed that Travelers Casualty and Surety Company of America hereby consents that effective from the 11th Day of September, 2024, said bond shall be amended as follows:
THE BOND PENALTY SHALL BE INCREASED:
FROM: Six Hundred Thousand Dollars and 00/100 ($600,000.00)
TO: Eight Hundred Fifty Thousand Dollars and 00/100 ($850,000.00)
That Travelers Casualty and Surety Company of America, Travelers Casualty and Surety Company, and St. Paul Fire and Marine Insurance Company are corporations duly organized under the laws of the State of Connecticut (herein collectively called the "Companies"), and that the Companies do hereby make, constitute and appoint Desiree E. Westmoreland of WICHITA, Kansas, their true and lawful Attorney(s)-in-Fact to sign, execute, seal and acknowledge any and all bonds, recognizances, conditional undertakings and other writings obligatory in the nature thereof on behalf of the Companies in their business of guaranteeing the fidelity of persons, guaranteeing the performance of contracts and executing or guaranteeing bonds and undertakings required or permitted in any actions or proceedings allowed by law.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, Travelers Casualty and Surety Company of America serves as the surety for a financial assurance bond required by the Maryland Securities Commissioner due to 7 Brew's financial condition. As of September 11, 2024, Travelers Casualty and Surety Company of America increased the bond penalty from $600,000 to $850,000. This bond is on file at the Maryland Office of the Attorney General, Securities Division.
Travelers Casualty and Surety Company of America, along with Travelers Casualty and Surety Company and St. Paul Fire and Marine Insurance Company, granted Power of Attorney to Desiree E. Westmoreland of Wichita, Kansas, to execute bonds and undertakings on their behalf. This includes guaranteeing the performance of contracts and executing bonds required in legal actions or proceedings.
For a prospective 7 Brew franchisee, this means that Travelers Casualty and Surety Company of America provides a financial guarantee to the State of Maryland, ensuring that 7 Brew can meet its financial obligations. The bond protects franchisees in Maryland in the event that 7 Brew fails to meet certain financial or contractual obligations. The Power of Attorney granted to Desiree E. Westmoreland allows her to act on behalf of Travelers Casualty and Surety Company of America in executing necessary legal documents related to these bonds and guarantees.