Why does 7 Brew restrict the sources of items and services for franchisees?

According to 7 Brew's 2025 Franchise Disclosure Document, 7 Brew restricts franchisees' sources for items and services to protect trade secrets and intellectual property. This also helps to ensure quality and a reliable supply of products that meet 7 Brew's standards. These restrictions enable 7 Brew to achieve better purchase and delivery terms, control third-party use of its trademarks, and monitor the manufacture, packaging, processing, sale, and delivery of items.

For a prospective franchisee, this means that nearly all (approximately 100%) of their purchases and leases to establish and operate the store must come from 7 Brew, its affiliates, designated or approved suppliers, or according to 7 Brew's specifications. While this limits a franchisee's autonomy in sourcing products, it is intended to maintain consistency and quality across all 7 Brew locations. Franchisees need to be aware that 7 Brew retains the right to modify Brand Standards, which may require additional capital investment or higher operating costs.

If a franchisee wishes to use a supplier not already approved by 7 Brew, they must demonstrate to 7 Brew's satisfaction that the supplier's quality and functionality are equivalent to the approved items. The supplier must also be reputable, financially responsible, and adequately insured. The franchisee will bear the costs of 7 Brew's evaluation of the proposed supplier. 7 Brew has the right to inspect the supplier's facilities and require samples, and it can revoke approval if the supplier no longer meets its criteria. Despite these procedures, 7 Brew can limit the number of approved suppliers, designate mandatory sources, and refuse requests for any reason, including having an exclusive source already in place.

7 Brew and its affiliates also negotiate purchase arrangements with suppliers, including price terms, to promote the overall interests of the franchise system. However, 7 Brew does not guarantee the best pricing or most advantageous terms for franchisees and is not responsible for supplier performance. Franchisees are required to participate in 7 Brew's loyalty programs and use its digital ordering systems. While these restrictions may seem limiting, they are designed to maintain brand consistency and quality, which are common practices in franchising to protect the brand's reputation and ensure a uniform customer experience.