Under what circumstances might 7 Brew modify Brand Standards?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
We periodically may modify Brand Standards, which may accommodate regional or local variations, and those modifications may obligate you to invest additional capital in the Store and/or incur higher operating costs. You must implement any changes in mandatory Brand Standards within the time period we request.
Brand Standards may regulate, among other things, types, models, and brands of furniture, fixtures, signs, and equipment (including components of and required software licenses for the Computer System) required for the Store (collectively, "Operating Assets"); required, authorized, and unauthorized products and services for the Store; and designated and approved manufacturers, suppliers, and distributors of products and services. You must buy or lease all Operating Assets and other products and services for 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, our affiliates, and/or other restricted sources) at the prices the suppliers choose to charge.
To maintain the quality of 7 BREW Store products and services and our franchise network's reputation, all Operating Assets and other products and services your Store uses or sells (besides those described above that you currently may obtain only from us, our affiliates, and/or approved and designated suppliers) must meet our minimum standards and specifications, which we issue and modify based on our, our affiliates', and our franchisees' experience in operating 7 BREW Stores. Standards and specifications may impose minimum requirements for production, performance, safety, reputation, prices, quality, design, and appearance. Our Operations Manual, other technical manuals, and written and on-line communications will identify our standards and specifications for you. When appropriate and authorized, you may provide those standards and specifications to suppliers if they agree to maintain confidentiality.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 27–32)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, 7 Brew periodically may modify Brand Standards. These modifications may accommodate regional or local variations. Such changes may require franchisees to invest additional capital in their stores and/or incur higher operating costs. Franchisees are obligated to implement any changes in mandatory Brand Standards within the timeframe requested by 7 Brew.
Brand Standards regulate various aspects of the store, including the types, models, and brands of furniture, fixtures, signs, and equipment (collectively referred to as "Operating Assets"). They also cover required, authorized, and unauthorized products and services, as well as designated and approved manufacturers, suppliers, and distributors of these products and services. Franchisees must buy or lease all Operating Assets and other products and services for the store only according to Brand Standards. If required by 7 Brew, franchisees must purchase these items only from manufacturers, suppliers, or distributors that 7 Brew designates or approves, which may include 7 Brew, its affiliates, and/or other restricted sources, at the prices the suppliers choose to charge.
These standards are put in place to maintain the quality of 7 Brew store products and services and the franchise network's reputation. The standards and specifications may impose minimum requirements for production, performance, safety, reputation, prices, quality, design, and appearance. 7 Brew identifies these standards and specifications in its Operations Manual, other technical manuals, and written and online communications. Franchisees may provide these standards and specifications to suppliers if authorized and if the suppliers agree to maintain confidentiality.
For a prospective franchisee, this means that the costs of running the franchise could change if 7 Brew decides to modify brand standards. It also means that the franchisee will need to stay up-to-date with any changes to the operations manual and other communications from 7 Brew to ensure compliance with brand standards.