Are there any fees associated with using ure Franchise, LLC for 7 Brew franchisees?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon thirty (30) days' prior written notice to you, you agree to begin paying us a weekly technology fee ("Tech Fees") in the amount we periodically specify, but not to exceed one-quarter percent (0.25%) of the Store's weekly Gross Sales. The weekly Tech Fee is due and payable at the same time and in the same manner as the Royalty, unless we otherwise specify. 7 BREW Stores that we and our affiliates own will pay the Tech Fees on the same percentage basis as franchisees. We will use Tech Fees to fund the technology expenditures we deem best for the Franchise System (as well as affiliated 7 BREW Stores), including, without limitation, mobile training and operational performance software, cloud-based franchise-management solutions, IT phone support and database maintenance, Digital Marketing, online ordering and loyalty subscriptions, iPad mobile device management, and e-learning solutions.
We may allocate and spend Tech Fees in our sole judgment, including for salaries, wages, and benefits, direct technology program costs, and overhead expenses for the activities described above. Despite payment of the Tech Fees to us, you must pay third-party vendors for the costs of and support services for your Store's Computer System. We have no obligation to account to you or other franchisees for our use of Tech Fees or to ensure that you or the Store benefits directly or pro rata based on your payments of Tech Fees.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, 7 Brew franchisees are required to pay a weekly technology fee. This Tech Fee is determined by 7 Brew, but it cannot exceed 0.25% of the store's weekly Gross Sales. Franchisees must pay this fee at the same time and in the same manner as the Royalty, unless 7 Brew specifies otherwise. Notably, 7 Brew-owned stores also pay this Tech Fee on the same percentage basis as franchisees.
The Tech Fees are used by 7 Brew to fund technology expenditures that they deem beneficial for the franchise system, including mobile training and operational performance software, cloud-based franchise-management solutions, IT phone support and database maintenance, Digital Marketing, online ordering and loyalty subscriptions, iPad mobile device management, and e-learning solutions. 7 Brew has the sole discretion in allocating and spending these Tech Fees, which may include salaries, wages, benefits, direct technology program costs, and overhead expenses.
Despite paying the Tech Fees to 7 Brew, franchisees are still responsible for paying third-party vendors for the costs and support services related to their store's computer system. 7 Brew is not obligated to account to franchisees for how the Tech Fees are used or to ensure that franchisees directly benefit from their Tech Fee payments. This means that while franchisees contribute to a technology fund, they may not see a direct or proportional return on their investment, and they still have separate obligations for their own IT expenses.