Under what section of the 7 Brew Franchise Agreement is the Technology Fee described?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
- xi. Technology Fee identifies the percentage of Gross Sales that we have the right to require a franchisee to pay us as a Technology Fee (under Section 5.C of the Franchise Agreement). These figures do not represent the actual amounts that the Measured Stores spent on technology and related expenses. No Technology Fee was charged during Fiscal Year 2024.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 61–73)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the Technology Fee is described under Section 5.C of the Franchise Agreement. Specifically, Item 19 of the FDD mentions that the Technology Fee identifies the percentage of Gross Sales that 7 Brew has the right to require a franchisee to pay.
It's important to note that while 7 Brew has the right to charge a Technology Fee, the figures provided in Item 19 do not represent the actual amounts that the Measured Stores spent on technology and related expenses. Furthermore, the FDD states that no Technology Fee was charged during Fiscal Year 2024. This means that while the Franchise Agreement outlines the potential for a Technology Fee, it was not actively collected during the reported fiscal year.
For a prospective franchisee, this information indicates that a Technology Fee is a possibility under the terms of the agreement, and it's crucial to understand the conditions under which this fee could be implemented. While it wasn't charged in 2024, 7 Brew retains the right to implement it, potentially impacting the franchisee's financial performance. Therefore, it would be prudent for potential franchisees to discuss the likelihood and potential amount of this fee with 7 Brew during their due diligence.