What factors might 7 Brew consider when evaluating the impact of a supplier approval?

According to 7 Brew's 2025 Franchise Disclosure Document, when evaluating the impact of a supplier approval, 7 Brew may consider whether having more than one supplier in a market area could be disadvantageous from a cost and service perspective. Specifically, 7 Brew may assess the impact of any supplier approval on its and its franchisees' ability to obtain the lowest distribution costs and best service. However, 7 Brew does not guarantee that it will obtain the best pricing or most advantageous terms for 7 Brew stores, nor does it guarantee the performance of suppliers and distributors.

Furthermore, if a franchisee wants to use a supplier that 7 Brew has not approved, the franchisee must demonstrate to 7 Brew's satisfaction that the supplier's quality and functionality are equivalent to those of approved suppliers. The supplier must also be reputable, financially responsible, and adequately insured for product-liability claims. The franchisee will bear the costs associated with 7 Brew's evaluation of the proposed supplier.

7 Brew may also base its approval of a supplier or distributor on factors such as product taste, quality, and safety; third-party lab testing; prices; consistency; warranty; supply-chain reliability and integrity; financial stability; customer relations; frequency, economy, and efficiency of delivery; concentration of purchases; and standards of service, including prompt attention to complaints. 7 Brew has the right to inspect the proposed supplier's facilities and require product samples for testing. If 7 Brew approves a supplier recommended by a franchisee, other 7 Brew stores may also use that supplier without any compensation to the recommending franchisee. 7 Brew may limit the number of approved suppliers, designate mandatory sources, or refuse a franchisee's request for any reason, including having an exclusive source already in place or believing it is in the best interest of the 7 Brew network.