Considering Item 5, Item 6, and Item 7, what is the total estimated initial investment for a 7 Brew franchise, including all fees and expenses?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of expenditure | Amount | Method of payment | When due | To whom payment is to be made |
|---|---|---|---|---|
| Development Fee and First Initial Franchise Fee (minimum 5-Store commitment) (Note 1) | $75,000 | Lump sum | Upon signing first Franchise Agreement and DRR | Us |
| Rent and Security Deposit (Note 2) | $5,000 to $20,000 | Monthly | As incurred | Third Party (your landlord) |
| Building / Build-Out Costs (Note 2) | $318,500 to $600,000 | Lump sum or financed | As incurred | Our Affiliate or Third Parties (your landlord and/or contractor) |
| Site Development Costs (Note 2) | $200,000 to $800,000 | Lump sum or financed | As incurred | Third Parties (your landlord and/or contractor) |
| Architectural and Engineering Fees | $10,000 to $60,000 | Lump sum or financed | As incurred | Third Parties (your landlord and/or contractor) |
| Store Equipment, Fixtures, and Furniture (Note 3) | $185,000 to $250,000 | Lump sum or financed | As incurred | Approved Suppliers and Our Affiliate |
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 franchise fees.
Note 8: While there is no minimum required grand-opening marketing obligation, we recommend that you spend $25,000 to $50,000 starting 4 weeks before and extending 6 weeks after you open the Store.
The estimated ranges do not include government-imposed "impact fees." Impact fees are imposed by local governments on a new or proposed development to help pay for a portion of the costs the new development may cause with public services. These fees vary by market. Some local governments may require a performance bond, which is not included above.
What This Means (2025 FDD)
According to the 2025 FDD, the total investment necessary to begin operation with development rights for 7 Brew ranges from $894,000 to $2,178,500. This includes a development fee and the initial franchise fee for the first store, totaling $75,000, which is paid upon signing the first Franchise Agreement and Development Rights Rider (DRR). The initial franchise fee for the first 7 Brew store is $35,000, with subsequent stores costing $25,000 each.
Item 7 outlines various expenditures that contribute to this initial investment. These include rent and security deposits, which range from $5,000 to $20,000, and building/build-out costs, estimated between $318,500 and $600,000. Site development costs range from $200,000 to $800,000, while architectural and engineering fees can amount to $10,000 to $60,000. Store equipment, fixtures, and furniture are estimated to cost between $185,000 and $250,000. These costs can vary significantly based on location, landlord negotiations, and specific site requirements.
Additional pre-opening and initial expenses for the first three months of operation, such as labor, supplies, rent, and utilities, are also part of the initial investment. While there is no minimum required grand-opening marketing obligation, 7 Brew recommends spending $25,000 to $50,000 for marketing activities around the store opening. These figures do not include potential government-imposed impact fees or performance bonds, which can vary by market. Prospective franchisees should carefully review these figures with a business advisor to understand the full financial commitment before acquiring a franchise.