Can 7 Brew refuse a franchisee's request to use a specific supplier?

According to 7 Brew's 2025 Franchise Disclosure Document, 7 Brew has broad discretion over which suppliers a franchisee can use. 7 Brew may limit the number of approved suppliers, designate specific sources that franchisees must use, and refuse a franchisee's request to use a particular supplier for any reason. This includes situations where 7 Brew has already designated an exclusive source for a specific item or service, potentially an affiliate of 7 Brew, or if 7 Brew believes that limiting the supplier is in the best interest of the 7 Brew network.

If a franchisee wants to use a supplier that 7 Brew has not approved, the franchisee must demonstrate to 7 Brew's satisfaction that the supplier's quality and functionality are equivalent to those of approved suppliers. 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 in evaluating the proposed supplier. 7 Brew can also set conditions for approving a supplier, including requirements related to product taste, quality, safety, third-party lab testing, prices, consistency, warranty, supply-chain reliability, financial stability, customer relations, delivery efficiency, and service standards.

7 Brew's ability to mandate suppliers and refuse requests gives them significant control over the supply chain. This control may allow 7 Brew to negotiate better pricing or ensure consistent quality across all locations. However, it also means that franchisees have limited autonomy in sourcing products and services, and they may be required to purchase from suppliers that are more expensive or less convenient than other options. Franchisees should consider these factors and the potential impact on their operating costs and profitability.

While 7 Brew does not guarantee the best pricing or most advantageous terms for franchisees, they do retain the right to derive revenue from suppliers they designate, approve, or recommend. This revenue can come in various forms, such as promotional allowances, volume discounts, and commissions. All revenue received from suppliers is the exclusive property of 7 Brew and its affiliates, which they can use without restriction. This arrangement highlights the importance of franchisees understanding the potential financial relationships between 7 Brew and its approved suppliers.