Under what circumstances might 7 Brew designate an exclusive source for a particular item or service?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
- (4) Despite the foregoing, we may limit the number of approved suppliers and distributors with which you may deal, designate sources you must use, and refuse any of your requests for any reason, including, without limitation, because we have already designated an exclusive source (which might be us or one of our affiliates) for a particular item or service or believe that doing so is in the 7 BREW Store network's best interests.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, 7 Brew has the right to designate exclusive sources for particular items or services. This means that 7 Brew can mandate that franchisees purchase specific products or services only from a single, approved supplier, which could be 7 Brew itself or one of its affiliates.
7 Brew can limit the number of approved suppliers and distributors a franchisee can use, designate specific sources that franchisees must use, and refuse any requests from franchisees to use other suppliers. This can occur for any reason, including if 7 Brew has already designated an exclusive source for a particular item or service. 7 Brew can also make these decisions if they believe it is in the best interest of the 7 Brew Store network.
This policy gives 7 Brew significant control over the supply chain and product quality within its franchise system. While this may ensure consistency and quality across all locations, it could also limit a franchisee's ability to find better deals or customize their offerings. Prospective franchisees should consider the potential impact of these restrictions on their operational costs and flexibility.