How long does 7 Brew have to decide on a proposed supplier?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 purchase products or services from a supplier that 7 Brew has not yet approved, 7 Brew has a 'reasonable time' to decide whether to approve the supplier. The FDD specifies that this reasonable time will be no more than 90 days.
To gain approval, the franchisee must demonstrate to 7 Brew's satisfaction that the proposed supplier's quality and functionality are equivalent to the approved item or service. The supplier must also be reputable, financially responsible, and adequately insured for product-liability claims. The franchisee is responsible for covering any expenses 7 Brew incurs while assessing the supplier.
7 Brew retains the right to set conditions for supplier approval, considering factors such as product taste, quality, safety, pricing, supply chain reliability, financial stability, customer relations, and delivery efficiency. 7 Brew can also inspect the supplier's facilities and request samples for testing. Even after approval, 7 Brew can revoke approval if the supplier no longer meets their criteria. Ultimately, 7 Brew can limit the number of approved suppliers, designate specific sources, or reject a franchisee's request for any reason if it aligns with the best interests of the 7 Brew system.