Can 7 Brew designate specific sources that a 7 Brew franchisee must use?

According to 7 Brew's 2025 Franchise Disclosure Document, 7 Brew has the authority to limit the number of approved suppliers and distributors that a franchisee can use. 7 Brew can also designate specific sources that franchisees must use. This includes the possibility of 7 Brew or one of its affiliates being the exclusive source for a particular item or service. 7 Brew retains this right for any reason, especially if it believes doing so is in the best interest of the 7 Brew Store network.

This means that a 7 Brew franchisee may be required to purchase certain products, services, or operating assets from suppliers or distributors that 7 Brew has specifically chosen. While franchisees can suggest alternative suppliers, 7 Brew's approval is required. The franchisee may incur expenses to demonstrate that the alternative supplier meets 7 Brew's standards for quality, functionality, reputation, and financial responsibility.

7 Brew may also benefit financially from these supplier relationships. The document states that 7 Brew and its affiliates may receive revenue from suppliers they designate or approve, in the form of promotional allowances, discounts, commissions, and other economic benefits. These revenues are the exclusive property of 7 Brew and its affiliates, which they can use without restriction.

This level of control over suppliers is common in franchising, as it allows the franchisor to maintain quality control and consistency across all locations. However, it also means that franchisees may not be able to negotiate better prices or terms with other suppliers, and they are dependent on the suppliers approved by 7 Brew.