factual

Is the affiliate supplier of the modular building for a 7 Brew store the only approved supplier?

7_Brew Franchise · 2025 FDD

Answer from 2025 FDD Document

tems or services. As described in Item 1, one of our affiliates is an approved (but not the only) supplier of the modular building for your Store and also is the

designated supplier of the coffee equipment packages you need to operate your Store.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 27–32)

What This Means (2025 FDD)

According to 7 Brew's 2025 Franchise Disclosure Document, one of 7 Brew's affiliates is an approved supplier of the modular building for your store, but is not the only approved supplier. The affiliate is also the designated supplier of the coffee equipment packages needed to operate the store. Another affiliate originates certain energy drinks that the store will sell.

7 Brew mandates that franchisees buy or lease all operating assets and other products and services according to brand standards. If 7 Brew requires it, franchisees must buy only from manufacturers, suppliers, or distributors that 7 Brew designates or approves, which may include 7 Brew, its affiliates, and/or other restricted sources, at the prices the suppliers choose to charge.

If a franchisee wants to purchase operating assets, products, or services from a supplier or distributor that 7 Brew has not approved, the franchisee must establish to 7 Brew's reasonable satisfaction that the quality and functionality of the item or service are equivalent to that of the item or service it replaces and that the supplier or distributor is reputable, financially responsible, and adequately insured for product-liability claims. 7 Brew will decide within a reasonable time (no more than 90 days) and has the right to condition supplier or distributor approval on requirements relating to product taste; quality; safety; third-party lab testing; prices; consistency; warranty; supply-chain reliability and integrity; financial stability; customer relations; frequency, economy, and efficiency of delivery; the benefits of concentrating purchases with limited suppliers; standards of service (including prompt attention to complaints); and other criteria.

7 Brew has the right to inspect the proposed supplier's or distributor's facilities and require the proposed supplier or distributor to send samples or items either directly to 7 Brew or to a third-party testing service. 7 Brew has the right to re-inspect a supplier's or distributor's facilities and items and revoke its approval of any supplier, distributor, product, or service no longer meeting its criteria by notifying the franchisee and/or the supplier or distributor. 7 Brew does not make its supplier approval criteria available to franchisees. Despite these procedures, 7 Brew has the right to limit the number of approved suppliers and distributors, designate sources franchisees must use, and refuse requests for any reason, including because 7 Brew already has designated an exclusive source (which might be 7 Brew or its affiliate) for a particular item or service or believe that doing so is in the 7 Brew store network's best interest.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.