What factors does 7 Brew consider when deciding whether to approve a supplier?
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 wants to use a supplier that 7 Brew hasn't already approved, the franchisee must prove to 7 Brew that the supplier's quality and functionality are equivalent to what 7 Brew already uses. The supplier must also be reputable, financially stable, and adequately insured for product-liability claims. The franchisee will have to cover any expenses 7 Brew incurs while assessing the potential supplier.
7 Brew has the right to inspect the supplier's facilities and ask for samples, and can also re-inspect and revoke approval if the supplier no longer meets 7 Brew's standards. 7 Brew will decide on the supplier within 90 days and can base their approval on factors like product taste, quality, safety, third-party lab testing, prices, consistency, warranty, supply-chain reliability, financial stability, customer relations, delivery efficiency, the benefits of concentrating purchases, and service standards.
Despite these procedures, 7 Brew can limit the number of approved suppliers, designate specific sources, and reject a franchisee's request for any reason, including if they already have an exclusive source for the item or service. If 7 Brew approves a supplier recommended by a franchisee, they can allow other 7 Brew stores to use that supplier without compensating the franchisee who made the recommendation. Note that 7 Brew does not make their supplier approval criteria available to franchisees.