Besides the development fee, what other initial investment is required when signing the DRR for 7 Brew?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
Notes to Table:
Note 1: The initial franchise fee for your first 7 BREW Store is $35,000. The initial franchise fee for the second and each subsequent Store you commit to develop is $25,000. You must commit to develop a minimum five 7 BREW Stores when you sign the first Franchise Agreement and the DRR. The total investment necessary to begin operation with those development rights is $894,000 to $2,178,500. Other than payment of the development fee, no separate initial investment is required when you sign the DRR. The development fee equals the full $35,000 initial franchise fee for the first Store covered by the Franchise Agreement to which the DRR is attached, plus $10,000 for each additional Store you commit to develop. This $10,000 per-Store payment is not a deposit toward future initial
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 23–27)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, beyond the development fee, no other initial investment is required when signing the Development Rights Rider (DRR). However, it's important to note that franchisees must commit to developing a minimum of five 7 Brew stores when signing the initial Franchise Agreement and the DRR. The total investment to begin operation with these development rights ranges from $894,000 to $2,178,500.
The development fee itself is structured as the full $35,000 initial franchise fee for the first store covered by the Franchise Agreement, plus an additional $10,000 for each subsequent store a franchisee commits to develop. This per-store payment of $10,000 is not a deposit towards future initial franchise fees, meaning it is an additional cost.
While no other initial investment is required when signing the DRR, the initial investment table outlines numerous other costs that will be incurred as the franchisee begins to develop and open their 7 Brew stores. These costs include rent and security deposits ($5,000 to $20,000), building/build-out costs ($318,500 to $600,000), site development costs ($200,000 to $800,000), and store equipment, fixtures, and furniture ($185,000 to $250,000).