7 BREW Franchise Information, Costs and Fees

In this article, we’ll dive deep into the 7-BREW Franchise Disclosure Document (FDD), exploring the key costs, fees, and essential information you need to know before investing in this franchise opportunity.

The 7-BREW Concept

7-BREW is a specialty coffee franchise that prides itself on offering a unique and innovative approach to the coffee experience. Unlike traditional coffee shops, 7-BREW focuses on serving a rotating selection of carefully curated, seasonal coffee blends from around the world.

The franchise’s modern and minimalist design creates a welcoming atmosphere that appeals to a wide range of customers, from coffee connoisseurs to casual coffee drinkers. With a commitment to sustainability and environmentally friendly practices, 7-BREW has positioned itself as a socially responsible brand, resonating with conscious consumers.

Initial Investment and Fees

According to the 7-BREW FDD, the total investment required to open a franchise ranges from $275,000 to $525,000. This investment covers various costs, including the initial franchise fee, leasehold improvements, equipment, inventory, and working capital.

The initial franchise fee for a single 7-BREW location is $35,000. This fee grants you the right to use the 7-BREW brand, systems, and processes. It’s important to note that the franchise fee is non-refundable, even if your franchise application is ultimately denied.

In addition to the franchise fee, you’ll need to budget for other costs, such as:

• Leasehold improvements: $100,000 to $250,000
• Equipment and fixtures: $50,000 to $100,000
• Inventory and supplies: $10,000 to $20,000
• Working capital: $25,000 to $50,000

It’s worth mentioning that these figures are estimates, and your actual costs may vary depending on factors like location, size of the premises, and specific requirements.

Ongoing Fees and Royalties

As with most franchise systems, 7-BREW franchisees are required to pay ongoing fees and royalties to the franchisor. These fees help cover the costs of ongoing support, training, marketing, and other services provided by the franchisor.

The 7 BREW FDD outlines the following ongoing fees:

• Royalty fee: 6% of gross sales
• Advertising fee: 2% of gross sales
• Technology fee: 0.5% of gross sales

In addition to these fees, franchisees may be required to contribute to regional or national marketing campaigns, as determined by the franchisor.

Training and Support

One of the key advantages of joining a franchise system like 7-BREW is the comprehensive training and support provided by the franchisor. According to the FDD, 7-BREW offers an extensive training program that covers all aspects of running a successful coffee franchise, including:

• Operations and management
• Customer service
• Coffee preparation and brewing methods
• Marketing and promotions
• Accounting and financial management

The initial training program is typically conducted at the franchisor’s headquarters or a designated training facility. Additionally, 7-BREW provides ongoing support through field visits, online resources, and a dedicated franchise support team.

Territory and Exclusivity

Like many franchises, 7-BREW grants franchisees exclusive territorial rights within a defined geographical area. The size and scope of this territory will depend on factors such as population density and market potential.

It’s important to note that the franchisor reserves the right to open company-owned locations or grant additional franchises within the designated territory, subject to certain conditions outlined in the franchise agreement.

Renewal and Transfer Rights

The 7-BREW franchise agreement typically has an initial term of 10 years. Upon expiration, franchisees have the option to renew their agreement, provided they meet certain criteria and are in good standing with the franchisor.

If you decide to sell or transfer your 7-BREW franchise, the FDD outlines the process and requirements you’ll need to follow. This typically involves obtaining approval from the franchisor and potentially paying a transfer fee.

About Southern Brew Corp

Southern Brew Corp is a prominent franchisee and operator of 7 Brew stands across North and Central Alabama, East Tennessee, and West Georgia. Having secured an exclusive development agreement with 7 Brew, Southern Brew is poised to establish an impressive network of 79 stands within the next eight years. The company’s leadership team comprises seasoned professionals with extensive experience as owners and operators in the Quick Service Restaurant (QSR) industry, ensuring a strong foundation for their expansion plans.

Conclusion

The 7-BREW FDD provides valuable insights into the costs, fees, and essential information associated with owning and operating a 7-BREW franchise. While the initial investment may seem substantial, the franchise’s unique concept, comprehensive training, and ongoing support make it an attractive opportunity for entrepreneurs looking to succeed in the competitive coffee industry.

However, as with any franchise opportunity, it’s crucial to thoroughly review the FDD, consult with legal and financial advisors, and carefully assess your goals, resources, and commitment level before making an investment decision.

Remember, owning a franchise is a significant undertaking, but with the right preparation and due diligence, it can be a rewarding and lucrative endeavor for those passionate about the coffee industry and dedicated to providing an exceptional customer experience.