What does 'Shipping Point' refer to in the 7 Brew agreement regarding shipment of the Unit?
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 "Shipping Point" in the context of the agreement refers to the Manufacturing Site. This is relevant to the transfer of ownership and risk of loss for the Unit, which passes to the franchisee when the Unit leaves the Manufacturer's Site. The shipment of the Unit is specified to be F.O.B. (Free On Board) Shipping Point, meaning the franchisee assumes responsibility for the Unit once it leaves the manufacturing site.
As a 7 Brew franchisee, you are responsible for all freight, shipment, and insurance charges associated with the shipment of the Unit from the Manufacturing Site to your location. While the manufacturer's personnel will load the Unit onto the freight carrier's vehicle at the Manufacturing Site, coordinating, supplying, and paying for the unloading, transportation, delivery, and installation of the Unit, including related equipment, fixtures, plumbing, electrical, heating, and air systems, are your sole responsibility and expense.
Furthermore, if you are unable to transport the Unit within thirty days of the Completion Date, 7 Brew's manufacturer will store the Unit at the Manufacturing Site or another acceptable facility, but you will incur a Storage Fee of $1,000 per day, up to a maximum of ten days. Failure to transport the Unit after this period allows the manufacturer to sell the Unit to another party, potentially refunding your purchase price or applying it to another Unit available for shipment within thirty days of the Completion Date. Therefore, it is crucial to arrange transportation promptly to avoid additional costs and potential loss of the Unit.