Who is the surety for the 7 Brew bond, as indicated in the Increase Penalty Rider?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
o any bond or understanding to which it is attached.
I, Kevin E. Hughes, the undersigned, Assistant Secretary of each of the Companies, do hereby certify that the above and foregoing is a true and correct copy of the Power of Attorney executed by said Companies, which remains in full force and effect.
Dated this
day of October 2023
Kevin E. Hughes, Assistant Secretary
INCREASE PENALTY RIDER
BOND NO. 107883372
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)
The INCREASE of said bond penalty shall be effective as of the 11
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to the 2025 7 Brew Franchise Disclosure Document, the surety for the bond is Travelers Casualty and Surety Company of America. The Increase Penalty Rider, which amends Bond No. 107883372, confirms that Travelers Casualty and Surety Company of America acts as the surety.
The bond, initially set at $600,000.00, was increased to $850,000.00, effective September 11, 2024. This increase was implemented to meet the financial assurance requirements of the Maryland Securities Commissioner, based on 7 Brew's financial condition.
For a prospective franchisee, this means that 7 Brew has obtained a surety bond to comply with regulatory requirements in Maryland. This bond protects the franchisee in the event that 7 Brew fails to meet certain financial or contractual obligations. The bond details, including the surety company and the bond amount, are on file with the Maryland Office of the Attorney General, Securities Division, providing an avenue for franchisees to verify this information.