Are 7 Brew franchisees required to purchase modular buildings from CTAR, Inc.?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) CTAR, Inc., an Arkansas corporation whose principal business address is the same as ours, (i) constructs the modular buildings for 7 BREW Stores, including franchised 7 BREW Stores, and is an approved (but not the only) supplier of those buildings and (ii) is the designated supplier of coffee equipment packages that franchisees need to operate their Stores; and
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–12)
What This Means (2025 FDD)
According to the 2025 7 Brew Franchise Disclosure Document, franchisees are not required to purchase modular buildings from CTAR, Inc. While CTAR, Inc. constructs the modular buildings for 7 Brew stores, including franchised locations, it is only an approved supplier, not the only supplier. This provides franchisees with the flexibility to explore other options for sourcing their modular buildings, potentially allowing them to find more cost-effective or otherwise suitable alternatives.
This arrangement can be beneficial for prospective franchisees as it allows for some degree of negotiation and comparison shopping. Franchisees are not locked into a single supplier, which could lead to better pricing or customized solutions. However, it also means that franchisees will need to conduct their own due diligence to ensure that any alternative suppliers meet 7 Brew's standards and specifications.
It is important for potential 7 Brew franchisees to carefully review the list of approved suppliers and understand the criteria for selecting alternative suppliers. They should also consider the potential impact on construction timelines and overall project costs when making their decision. While the flexibility to choose suppliers can be advantageous, it also places additional responsibility on the franchisee to ensure quality and compliance with 7 Brew's brand standards.