Does 7 Brew currently participate in any purchasing or distribution cooperatives?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
There currently are no purchasing or distribution cooperatives, although we retain the right to form them. We and our affiliates currently negotiate purchase arrangements with suppliers (including price terms) for the Store's modular building, all inventory products, and certain services, including accounting and financial reporting. In doing so, we and our affiliates seek to promote the overall interests of the franchise system and affiliate-owned operations and our interests as the franchisor (and not for the particular benefit of one or more particular franchisees). We and our affiliates might not obtain the best pricing or most advantageous terms on behalf of 7 BREW Stores. We and our affiliates also are not responsible for the performance of suppliers and distributors to 7 BREW Stores, including if their products or services fail to conform to or perform in compliance with Brand Standards or our contractual terms with the supplier or distributor.
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, 7 Brew does not currently participate in any purchasing or distribution cooperatives. However, 7 Brew retains the right to form them in the future. Currently, 7 Brew and its affiliates negotiate purchase arrangements with suppliers, including setting price terms for the store's modular building, all inventory products, and certain services like accounting and financial reporting. These negotiations aim to promote the overall interests of the franchise system, affiliate-owned operations, and 7 Brew's interests as the franchisor.
It is important to note that 7 Brew and its affiliates might not always obtain the best pricing or most advantageous terms for franchisees. Additionally, 7 Brew and its affiliates are not responsible for the performance of suppliers and distributors to 7 Brew stores, including if their products or services fail to meet brand standards or contractual terms. This means that while 7 Brew controls the supply chain, franchisees bear some risk related to supplier performance.
Despite not participating in purchasing cooperatives, 7 Brew's affiliate, Brew Culture Buying Group LLC, received $6,456,179 in cash payments during 2024 from unaffiliated suppliers based on those suppliers' sales of certain beverages, ingredients, packaging, and other items to franchisees. This arrangement allows 7 Brew to benefit financially from the supply chain, even without a formal cooperative structure. Prospective franchisees should be aware of these arrangements and how they might affect their costs and sourcing options.