Is 7 Brew liable if a supplier's services fail to meet brand standards?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
We also do not guaranty the performance of suppliers and distributors to 7 BREW Stores.
We are not responsible or liable if the products or services provided by a supplier or distributor fail to conform to or perform in compliance with Brand Standards or our contractual terms with the supplier or distributor.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, 7 Brew is not liable if a supplier's products or services fail to meet brand standards. The franchisee bears the risk of supplier performance, even though 7 Brew designates and approves these suppliers. This means that if a designated supplier provides substandard goods or services, the franchisee cannot hold 7 Brew responsible.
This lack of liability extends to both the conformance and performance of the supplier's offerings relative to 7 Brew's brand standards and any contractual terms 7 Brew has with the supplier. Even though 7 Brew may approve suppliers based on criteria like product taste, quality, safety, and supply-chain reliability, it does not guarantee their performance.
This arrangement places the onus on the franchisee to manage supplier-related risks. While 7 Brew may consult with a franchisee's suppliers about the status of the franchisee's account and advise them if the franchisee is in default, this does not create liability for supplier shortcomings. Prospective franchisees should carefully evaluate the approved supplier list and consider the potential impact of supplier failures on their business. It is important to note that 7 Brew may receive revenue from these suppliers based on the suppliers' dealings with the franchisee's store.