Does 7 Brew make its supplier approval criteria available to franchisees?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to inspect the proposed supplier's or distributor's facilities and require the proposed supplier or distributor to send samples or items either directly to us or to a third-party testing service. We have the right to re-inspect a supplier's or distributor's facilities and items and revoke our approval of any supplier, distributor, product, or service no longer meeting our criteria by notifying you and/or the supplier or distributor. We do not make our supplier approval criteria available to franchisees.
Despite these procedures, we have the right to limit the number of approved suppliers and distributors, designate sources you must use, and refuse your requests for any reason, including because we already have designated an exclusive source (which might be us or our affiliate) for a particular item or service or believe that doing so is in the 7 BREW Store network's best interest. If we approve any supplier or distributor you recommend, we have the right to authorize other 7 BREW Stores to buy or lease any Operating Assets, products, or services from that supplier or distributor without compensating you.
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, 7 Brew does not make its supplier approval criteria available to franchisees. However, if a franchisee wants to purchase or lease any operating assets, products, or services from a supplier or distributor that 7 Brew has not yet approved, the franchisee must demonstrate to 7 Brew's satisfaction that the quality and functionality of the item or service are equivalent to the approved item or service. The supplier or distributor must also be reputable, financially responsible, and adequately insured for product-liability claims.
7 Brew has the right to inspect the proposed supplier's or distributor's facilities and require them to send samples for testing. The company can also re-inspect facilities and items and revoke approval if a supplier, distributor, product, or service no longer meets their criteria. 7 Brew will decide within 90 days whether the items, services, suppliers, or distributors meet their requirements and specifications. These requirements may relate 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, and standards of service.
Despite these procedures, 7 Brew retains the right to limit the number of approved suppliers and distributors, designate sources franchisees must use, and refuse requests for any reason, including having an exclusive source already in place. If 7 Brew approves a supplier or distributor recommended by a franchisee, they have the right to authorize other 7 Brew stores to buy from that supplier without compensating the recommending franchisee. This means that while franchisees can suggest suppliers, 7 Brew maintains significant control over the supply chain and isn't obligated to share the specific criteria they use for approvals.