Are 7 Brew's officers allowed to own interest in any supplier to the franchise system?

According to 7 Brew's 2025 Franchise Disclosure Document, 7 Brew's officers are generally prohibited from owning interests in suppliers to the franchise system that are not affiliated with 7 Brew. However, there is an exception: one or more officers may have indirect ownership in 7 Energy LLC and CTAR, Inc., both of which are affiliates of 7 Brew and conduct business with franchisees. These affiliates are involved in supplying modular buildings and certain energy drinks to the 7 Brew stores.

This arrangement means that while 7 Brew aims to avoid conflicts of interest by preventing officers from owning stakes in independent suppliers, some officers do have a financial interest in affiliated suppliers. This could potentially influence decisions regarding the selection of these suppliers or the terms of their agreements with franchisees.

For a prospective franchisee, this information highlights the importance of understanding the relationships between 7 Brew, its affiliates, and its officers. It would be prudent to inquire about the nature and extent of these indirect ownership interests and how 7 Brew ensures fair and competitive pricing and service from these affiliated suppliers. Understanding these relationships can help a franchisee assess potential conflicts of interest and their impact on the franchise's operations and profitability.