Under what conditions can 7 Brew revoke approval of a supplier?

According to 7 Brew's 2025 Franchise Disclosure Document, 7 Brew has the right to re-inspect a supplier's or distributor's facilities and items. If a supplier or distributor no longer meets 7 Brew's criteria, 7 Brew can revoke its approval. This revocation is enacted by notifying the franchisee and/or the supplier or distributor.

This clause gives 7 Brew significant control over its supply chain. It ensures that suppliers consistently meet the required standards for product taste, quality, safety, supply chain reliability, financial stability, and customer relations. The initial approval process involves the franchisee establishing that the supplier is reputable, financially responsible, and adequately insured for product-liability claims. 7 Brew also has the right to inspect the supplier's facilities and require samples for testing.

For a prospective franchisee, this means that even if a supplier is initially approved, 7 Brew can later revoke that approval if the supplier fails to maintain the required standards. This could potentially disrupt the franchisee's supply chain and require them to find a new approved supplier. However, it also protects the franchisee by ensuring that all suppliers meet 7 Brew's criteria, maintaining the quality and consistency of the brand. 7 Brew does not make their supplier approval criteria available to franchisees.

This level of control over suppliers is common in franchising, as it helps maintain brand consistency and quality across all locations. Franchisees should be aware of this provision and understand that they may need to switch suppliers if 7 Brew revokes approval of their current supplier.