What technology initiatives for 7 Brew Stores can the Brand Fund fund?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
We have established a fund ("Brand Fund" or "Fund") for advertising, marketing, research and development, public relations, Social-Media management, lead-generation, customer-relationship-management, and technology programs, materials, and activities, the purpose of which is to enhance, promote, and protect the 7 BREW Store brand and Franchise System. You agree to contribute to the Brand Fund the amounts we periodically specify, not to exceed two percent (2.0%) of the Store's weekly Gross Sales. Your Brand Fund contribution is due and payable at the same time and in the same manner as the Royalty or in such other manner we periodically specify. 7 BREW Stores that we and our affiliates own will contribute to the Brand Fund on the same percentage basis as franchisees.
- (2) We will direct all programs the Brand Fund finances, with sole control over all creative and business aspects of the Fund's activities. The Brand Fund may pay for, among other things, preparing, producing, and placing video, audio, and written materials, Digital Marketing, and Social Media; developing, maintaining, and administering one or more System Websites; creating and administering national, regional, multi-regional, local, and multi-local marketing, advertising, and lead-generation programs (which may include spending Brand Fund contributions in specific geographic markets or directing Brand Fund contributions to individual or groups of franchisees to spend on marketing, advertising, and lead-generation programs in their own markets); using advertising, promotion, and marketing agencies and other advisors to provide assistance; establishing regional and national promotions and partnerships and hiring spokespersons to promote the 7 BREW Store brand; establishing on-line systems and other vehicles for centralized customer interaction; supporting public relations, market research and
development, and other advertising, promotion, marketing, and brand-related activities; funding visits by our executives, other personnel, and third-party service providers to 7 BREW Stores to establish, enforce, and confirm compliance with the 7 BREW Store culture; and funding technology initiatives for 7 BREW Stores, including mobile training and operational performance software, cloud-based franchise-management solutions, IT phone support and database maintenance, online ordering and loyalty subscriptions, iPad mobile device management, and elearning solutions.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the Brand Fund can fund technology initiatives for 7 Brew stores. These initiatives include mobile training and operational performance software, cloud-based franchise-management solutions, IT phone support and database maintenance, online ordering and loyalty subscriptions, iPad mobile device management, and e-learning solutions. These technologies are intended to support and improve the operations of 7 Brew franchise locations.
The Brand Fund is supported by franchisee contributions, which are capped at two percent of the store's weekly gross sales. 7 Brew has sole control over the Brand Fund's activities and programs. While 7 Brew aims to benefit all stores, there is no guarantee that the expenditures in any specific geographic area will be proportional to the contributions from stores in that area.
In addition to funding specific technology initiatives, the Brand Fund can also be used for advertising, marketing, research and development, public relations, social media management, and lead-generation. 7 Brew may also use the Brand Fund to cover salaries, wages, benefits, direct technology program costs, and overhead expenses related to these activities. Franchisees also pay a separate technology fee, up to 0.25% of gross weekly sales, for technology expenditures.