Under what circumstances would a 7 Brew franchisee be charged a De-Identification Fee?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee(1, 6) | Amount(2) | Due Date | Remarks |
|---|---|---|---|
| De-Identification Fee | Out-of-pocket cost reimbursement | As incurred | You must reimburse our costs of de- identifying your Store if you fail to do so. |
Source: Item 6 — OTHER FEES (FDD pages 16–23)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, a franchisee will be charged a De-Identification Fee if they fail to de-identify their 7 Brew store when required. This fee is not a fixed amount but rather a reimbursement for the franchisor's out-of-pocket costs incurred to de-identify the store. The fee is due as incurred, meaning the franchisee must pay promptly after 7 Brew incurs the costs.
De-identification typically involves removing 7 Brew branding, signage, and other identifying marks from a location when a franchise agreement terminates or is not renewed. This ensures that the location no longer represents the 7 Brew brand.
The fact that the De-Identification Fee is an 'out-of-pocket cost reimbursement' means the amount can vary significantly depending on the size of the store, the extent of branding to be removed, and the costs of labor and materials required for the de-identification process. A prospective 7 Brew franchisee should clarify with the franchisor the specific procedures and requirements for de-identification to better understand the potential costs involved.