Is there a minimum purchase requirement from ure Franchise, LLC for 7 Brew franchisees?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
(1) We may periodically designate and approve Brand Standards, manufacturers, suppliers, and/or distributors for the Operating Assets, products, and services we periodically authorize 7 BREW Stores to use or sell. You must purchase or lease all Operating Assets, products, and services you use or sell at the Store only according to Brand Standards and, if we require, only from manufacturers, suppliers, or distributors we designate or approve (which may include or be limited to us, certain of our affiliates, and/or other restricted sources). We and/or our affiliates may derive revenue—in the form of promotional allowances, volume discounts, commissions, other discounts, performance payments, signing bonuses, rebates, marketing and advertising allowances, free products, and other economic benefits and payments—from suppliers that we designate, approve, or recommend for some or all 7 BREW Stores on account of those suppliers' prospective or actual dealings with your Store and other 7 BREW Stores. That revenue may or may not be related to services we and our affiliates perform. All amounts received from suppliers, whether or not based on your or other franchisees' purchases from those suppliers, will be our and our affiliates' exclusive property, which we and our affiliates may retain and use without restriction
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to the 2025 7 Brew Franchise Disclosure Document, franchisees must purchase or lease all operating assets, products, and services according to brand standards. If 7 Brew requires, franchisees must purchase these items only from manufacturers, suppliers, or distributors that 7 Brew designates or approves. These approved sources may include 7 Brew itself, its affiliates, or other restricted sources.
7 Brew and its affiliates may receive revenue from designated suppliers in the form of promotional allowances, volume discounts, commissions, and other economic benefits. This revenue may or may not be related to services that 7 Brew and its affiliates perform. All amounts received from suppliers are the exclusive property of 7 Brew and its affiliates, which they can retain and use without restriction.
This arrangement means that a 7 Brew franchisee's costs could be affected by 7 Brew's choices of suppliers and any revenue arrangements 7 Brew has with them. While this is a common practice in franchising, prospective franchisees should evaluate whether the designated suppliers offer competitive pricing and terms. Franchisees do not have a choice in the suppliers they use, and all revenue generated through these relationships goes to 7 Brew.