If 7 Brew approves a supplier recommended by a franchisee, can other franchisees use that supplier?

According to 7 Brew's 2025 Franchise Disclosure Document, if 7 Brew approves a supplier or distributor recommended by a franchisee, 7 Brew may allow other franchisees to purchase or lease operating assets, products, or services from that approved supplier or distributor. This can occur without any limitations and without any compensation to the franchisee who initially recommended the supplier. This policy enables 7 Brew to leverage the approved supplier across the franchise system, potentially benefiting from economies of scale. However, the franchisee who suggested the supplier does not receive any direct benefit or compensation as a result of the broader adoption of their recommendation.

This clause highlights the importance of supplier relationships within the 7 Brew franchise model. While franchisees can suggest suppliers, the ultimate decision to approve and utilize a supplier rests with 7 Brew. The franchisor retains the right to allow all other 7 Brew stores to use the approved supplier without providing compensation to the franchisee who made the initial recommendation. This ensures that 7 Brew can optimize its supply chain and maintain consistent standards across all locations.

It is important to note that 7 Brew also retains the right to limit the number of approved suppliers and distributors, designate specific sources that franchisees must use, and refuse any requests for supplier approval for any reason. This includes situations where 7 Brew has already designated an exclusive source for a particular item or service, potentially even themselves or one of their affiliates. This control allows 7 Brew to maintain quality control, manage costs, and ensure consistency throughout the franchise system, which are common practices in franchising.