Considering Item 5, Item 6, and Item 7, what is the total estimated initial investment for a 7 Brew franchise, including leasehold improvements?

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 franchise fees.

Note 2: Real property costs vary considerably according to geographic location and immediate surrounding factors, such as traffic, property values, and demographics. (For example, rent costs are likely to be higher on the West Coast and East Coast and in dense major metropolitan areas and central business districts like Chicago.) The typical 7 BREW Store generally requires a lot ranging from 8,000 to 50,000 square feet on which the modular building—itself 510 square feet in size—will be placed. 7 BREW stores typically are placed on an out-parcel to a shopping center with street exposure in an urban or downtown location with heavy population, preferably with highway exposure or proximity.

Factors typically affecting your initial investment include your cost to negotiate the lease; local real estate market values; terms under which other locations have been leased; how the costs to renovate or develop the land, building, and other site improvements are allocated between landlord and tenant; interest costs; and the parties' negotiations. Lease terms are individually negotiated and may vary materially from one location or transaction to another.

Building costs include the cost to construct a modular building and related signage. Site development costs include the costs to develop the land and other site improvements, including exterior landscaping, electrical and water hookup, paving, sidewalks, lighting, etc. Some local governments may charge an additional amount for utility connections to offset their costs of maintaining water and sewer plants;