What conditions can 7 Brew place on supplier approval?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
confidentiality.
If you want to purchase or lease any Operating Assets, products, or services from a supplier or distributor we have not then approved (if we require you to buy or lease the product or service only from an approved supplier or distributor), then you must establish to our 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, among other things, reputable, financially responsible, and adequately insured for product-liability claims. You must pay upon request any actual expenses we incur to determine whether or not the items, services, suppliers, or distributors meet our requirements and specifications. We will decide within a reasonable time (no more than 90 days) and have 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.
We have 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 us or to a third-party testing service. We have the right to re-inspect a supplier's or distributor's facilities and items and revoke our approval of any supplier, distributor, product, or service no longer meeting our criteria by notifying you and/or the supplier or distributor. We do not make our supplier approval criteria available to franchisees.
Despite these procedures, we have the right to limit the number of approved suppliers and distributors, designate sources you must use, and refuse your requests for any reason, including because we already have designated an exclusive source (which might be us or our affiliate) for a particular item or service or believe that doing so is in the 7 BREW Store network's best interest. If we approve any supplier or distributor you recommend, we have the right to authorize other 7 BREW Stores to buy or lease any Operating Assets, products, or services from that supplier or distributor without compensating you.
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, if a franchisee wishes to use a supplier not already approved by 7 Brew, the franchisee must demonstrate to 7 Brew's satisfaction that the supplier's quality and functionality are equivalent to the approved options. The supplier must also be reputable, financially responsible, and adequately insured for product-liability claims. The franchisee is responsible for covering any expenses 7 Brew incurs while assessing the supplier.
7 Brew retains the right to set conditions for supplier approval. These conditions can relate to various factors, including product taste, quality, safety, third-party lab testing, prices, consistency, warranty, supply-chain reliability and integrity, and financial stability. Further conditions include customer relations, delivery frequency/efficiency, the benefits of concentrating purchases with limited suppliers, and service standards (including responsiveness to complaints). 7 Brew also has the right to inspect the supplier's facilities and require samples for testing.
7 Brew can re-inspect facilities and revoke approval if a supplier no longer meets their criteria. However, 7 Brew does not disclose its specific supplier approval criteria to franchisees. Despite these procedures, 7 Brew reserves the right to limit the number of approved suppliers, designate mandatory sources, and reject requests for any reason, including having an exclusive source already in place or believing it is in the best interest of the 7 Brew network.