What is the role of 7 Energy LLC in the 7 Brew franchise system?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
The following affiliates of ours (all of which are involved in the 7 BREW Store system) are disclosable in this Item 1:
- (1) 7 Energy LLC, a Wyoming limited liability company whose principal business address is 3400 S. US Highway 89, Jackson, Wyoming 83001, originates certain energy drinks for 7 BREW Stores, including franchised 7 BREW Stores, and is the designated source of certain brands of energy drinks it originates (although sales to franchisees will be made by unaffiliated suppliers);
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–12)
What This Means (2025 FDD)
According to the 2025 7 Brew Franchise Disclosure Document, 7 Energy LLC plays a specific role in the 7 Brew franchise system. 7 Energy LLC, an affiliate of Brew Culture Franchise, LLC, originates certain energy drinks for 7 Brew stores, including franchised locations. It is also the designated source of certain brands of energy drinks that it originates. However, the FDD specifies that sales to franchisees will be made by unaffiliated suppliers, meaning 7 Energy LLC does not directly sell to the franchisees.
For a prospective franchisee, this means that while 7 Energy LLC develops some of the energy drink products sold at 7 Brew locations, franchisees will purchase these products from suppliers not affiliated with 7 Energy LLC. This arrangement could be in place for various reasons, such as distribution logistics or regulatory compliance.
It is important for potential franchisees to understand the relationship between 7 Energy LLC, the franchisor, and the designated suppliers. Further due diligence should involve inquiring about the specific energy drink brands that 7 Energy LLC originates, the process for selecting and approving suppliers, and the potential impact on product costs and availability. Understanding these dynamics is crucial for assessing the overall profitability and operational aspects of a 7 Brew franchise.