Can 7 Brew designate itself or an affiliate as an exclusive source for a particular item or service?

According to 7 Brew's 2025 Franchise Disclosure Document, 7 Brew has the right to designate exclusive sources for particular items or services, which may include themselves or their affiliates. This means that as a franchisee, you may be required to purchase certain products or services only from 7 Brew or its affiliated companies. 7 Brew also retains the right to limit the number of approved suppliers and distributors and to refuse a franchisee's requests for alternative sources.

7 Brew and its affiliates can derive revenue from suppliers they designate, approve, or recommend to franchisees. This revenue can take various forms, such as promotional allowances, volume discounts, and rebates. All revenue received from suppliers belongs exclusively to 7 Brew and its affiliates, which they can use without restriction. Additionally, any products or services that 7 Brew or its affiliates sell directly to franchisees may be sold at prices exceeding their costs.

For a 7 Brew store, purchases and leases from 7 Brew, its affiliates, or designated/approved suppliers typically represent about 100% of the franchisee's overall purchases and leases for establishing and operating the store. This encompasses the modular building, all inventory products, and certain services like accounting and financial reporting. While 7 Brew negotiates purchase arrangements with suppliers, they state that they seek to promote the overall interests of the franchise system and affiliate-owned operations, which may not always result in the best pricing or most advantageous terms for individual franchisees. 7 Brew is also not responsible for the performance of these suppliers and distributors.

To maintain quality and protect brand standards, 7 Brew restricts franchisees' sources of items and services. This control helps protect trade secrets and intellectual property, ensures a reliable supply of products meeting 7 Brew's standards, and allows for better purchase and delivery terms. Franchisees must adhere to 7 Brew's Brand Standards, which regulate various aspects of the store, including Operating Assets, authorized products and services, and designated suppliers. Franchisees are required to buy or lease all Operating Assets and other products and services according to these Brand Standards and from designated or approved suppliers at the prices those suppliers set.