Upon termination or nonrenewal of the 7 Brew franchise agreement, what are the franchisee's obligations according to Section 18.C and 19 of the Franchise Agreement?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise or other agreement | Summary |
|---|---|---|
| i. Franchisee’s obligations on | 18.C and 19 of Franchise | Obligations include paying outstanding |
| termination/nonrenewal | Agreement | |
| amounts; complete de-identification; | ||
| returning confidential information; returning | ||
| or destroying (at our option and at your own | ||
| cost) branded materials and proprietary items; | ||
| assigning telephone and telecopy numbers | ||
| and directory listings; and cease using Digital | ||
| Marketing and Social Media associating you | ||
| with us or the Marks (also see (o) and (r) | ||
| below); we have the right to control de- | ||
| identification process if you do not | ||
| voluntarily take required action; we have the | ||
| right to assume Store’s management upon | ||
| your abandonment. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 54–61)
What This Means (2025 FDD)
According to the 2025 FDD, Section 18.C and 19 of the 7 Brew Franchise Agreement outline the franchisee's obligations upon termination or nonrenewal. These obligations include settling any outstanding financial amounts owed to 7 Brew. The franchisee must also completely remove any branding or identification that associates the business with the 7 Brew brand.
Additionally, the franchisee is required to return all confidential information to 7 Brew. They must also return or destroy, at their own cost and at 7 Brew's discretion, any branded materials and proprietary items. The franchisee is obligated to assign telephone and telecopy numbers, as well as directory listings, to 7 Brew.
Finally, the franchisee must cease using any digital marketing and social media platforms in a way that associates them with 7 Brew or its trademarks. If the franchisee does not voluntarily take the required actions for de-identification, 7 Brew has the right to control the de-identification process. 7 Brew also retains the right to assume management of the store if the franchisee abandons it.