Under what conditions can Brew Culture, LLC terminate the License Agreement for 7 Brew?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
Brew Culture, LLC licenses us to use these Marks and related intellectual property, and to authorize franchisees to use them in operating 7 BREW Stores, under a Trademarks, Copyrights, and Trade Secret License Agreement effective March 15, 2021 (the "License Agreement"). The License Agreement's initial term is 20 years; we have the right to renew the License Agreement for 3 successive 10-year terms. We have the right to terminate the License Agreement at any time. Brew Culture, LLC may terminate the License Agreement immediately if we breach the License Agreement and fail to cure the breach within 30 days after receiving written notice from Brew Culture, LLC. When the License Agreement terminates or expires, we must stop using and sublicensing the Marks and related intellectual property. However, any 7 BREW Store franchisee that has been authorized to use the Marks in its franchise may continue using the Marks until that franchisee's franchise agreement, and any permitted successor franchise agreement, expire or are terminated, but only if the franchisee continues to comply with its obligations in the franchise agreement and any permitted successor franchise agreement during their remaining terms. No other agreement limits our right to use or sublicense any Mark.
Source: Item 13 — TRADEMARKS (FDD pages 49–51)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, Brew Culture, LLC, which licenses the trademarks to the franchisor, has specific conditions under which it can terminate the License Agreement. The License Agreement, effective March 15, 2021, has an initial term of 20 years, with options for 7 Brew to renew for three successive 10-year terms. However, Brew Culture, LLC can terminate the License Agreement immediately if 7 Brew breaches the agreement and fails to correct the breach within 30 days after receiving written notice from Brew Culture, LLC.
This condition is significant for prospective 7 Brew franchisees because the License Agreement allows the franchisor to use the trademarks and related intellectual property necessary to operate 7 Brew stores. If Brew Culture, LLC terminates the License Agreement due to a breach by 7 Brew, it could disrupt the entire franchise system. Franchisees rely on the continued use of the 7 Brew trademarks to maintain brand recognition and customer loyalty.
Upon termination or expiration of the License Agreement, 7 Brew must stop using and sublicensing the Marks and related intellectual property. However, there is a provision that protects existing franchisees: any 7 Brew Store franchisee authorized to use the Marks may continue using them until their franchise agreement expires or is terminated, provided they continue to comply with their obligations. This offers some security to franchisees, ensuring they can continue operating under the 7 Brew brand even if the License Agreement between 7 Brew and Brew Culture, LLC is terminated. This is contingent on the franchisee's compliance with their own franchise agreement.