On what data is the financial performance representation for 7 Brew based?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
cular location or under particular circumstances.
This financial performance representation reflects certain actual historical average and median operating results for 180 7 BREW Stores (the "Measured Stores")—18 of which are owned by our parent company, Brew Culture, LLC (the "Company Stores"), and 162 of which are franchised Stores (the "Franchised Stores")—that were in operation during the entire 13-period timeframe (a full year) beginning with January 1, 2024, and ending with December 29, 2024 ("Fiscal Year 2024"). While an additional 137 franchised and affiliated 7 BREW Stores opened in
Fiscal Year 2024 (134 franchised 7 BREW Stores and 3 affiliated 7 BREW Stores), those Stores are excluded from the Measured Stores because they were not open for a full fiscal year as of the end of Fiscal Year 2024. The 180 Measured Stores operated for the full Fiscal Year 2024. No 7 BREW Stores closed (either temporarily or permanently) during Fiscal Year 2024. All financial performance representations are based on internal unaudited historical data that we obtained through the Computer System.
Exhibit 1 shows the average annual Gross Sales for all Measured Stores during the entire Fiscal Year 2024. It also shows the median Gross Sales for all Measured Stores during Fiscal Year 2024 and the highest and lowest individual Store Gross Sales of the Measured Stores during Fiscal Year 2024. Exhibit 2 shows average Net Sales, average Gross Profit, and average EBITDAR (EBITDAR is defined below)—all as a percentage of Gross Sales—for all Measured Stores during Fiscal Year 2024. Median performance in each of these categories is footnoted.
Exhibit 3 shows the average annual Gross Sales for the 18 Company Stores during the entire Fiscal Year 2024. It also shows the median Gross Sales for the 18 Company Stores during Fiscal Year 2024 and the highest and lowest individual Store Gross Sales of the Company Stores during Fiscal Year 2024. Exhibit 4 shows average Net Sales, average Gross Profit, and average EBITDAR (EBITDAR is defined below)—all as a percentage of Gross Sales—for the 18 Company Stores during Fiscal Year 2024. Median performance in each of these categories is footnoted.
Exhibit 5 shows the average annual Gross Sales for the 162 Franchised Stores during the entire Fiscal Year 2024. It also shows the median Gross Sales for the 162 Franchised Stores during Fiscal Year 2024 and the highest and lowest individual Store Gross Sales of the Franchised Stores during Fiscal Year 2024. Exhibit 6 shows average Net Sales, average Gross Profit, and average EBITDAR (EBITDAR is defined below)—all as a percentage of Gross Sales—for the 162 Franchised Stores during Fiscal Year 2024. Median performance in each of these categories is footnoted.
All 180 Measured Stores are substantially similar to the 7 BREW Stores for which we offer franchises in this disclosure document. Of the 18 affiliate-owned 7 BREW Stores included within the Measured Stores, 15 are located in Arkansas, one is located in Missouri, and 2 are located in South Carolina.
Of the 162 franchised 7 BREW Stores included within the Measured Stores, 8 are located in Alabama, 12 are located in Arkansas, one is located in Colorado, 11 are located in Florida, 4 are located in Georgia, 7 are located in Illinois, 12 are located in Indiana, 2 are located in Iowa, 7 are located in Kansas, 6 are located in Kentucky, 3 are located in Louisiana, 2 are located in Michigan, 2 are located in Mississippi, 15 are located in Missouri, 2 are located in Nebraska, 2 are located in New York, 5 are located in North Carolina, 4 are located in Ohio, 12 are located in Oklahoma, one is located in Pennsylvania, 4 are located in South Carolina, one is located in South Dakota, 9 are located in Tennessee, 26 are located in Texas, 2 are located in Virginia, and 2 are located in Wisconsin.
MEASURED STORES
The Measured Stores average approximately 510 square feet. As of the end of Fiscal Year 2024, the Measured Stores had been open for an average of 22 months.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 61–73)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the financial performance representation is based on the actual historical operating results of 180 7 Brew stores, called the "Measured Stores". This data includes 18 company-owned stores and 162 franchised stores. The financial data covers the entire 13-period timeframe (a full year) from January 1, 2024, to December 29, 2024, which 7 Brew refers to as Fiscal Year 2024. The 180 Measured Stores operated for the full Fiscal Year 2024, and no 7 Brew stores closed during this period.
The financial performance representation includes average annual Gross Sales, median Gross Sales, and the highest and lowest individual store Gross Sales for the Measured Stores during Fiscal Year 2024. It also includes average Net Sales, average Gross Profit, and average EBITDAR (earnings before interest, taxes, depreciation, amortization, and rent) as a percentage of Gross Sales for the Measured Stores during Fiscal Year 2024, with median performance footnoted. The FDD specifies that all financial performance representations are based on internal unaudited historical data obtained through the Computer System.
The 7 Brew FDD emphasizes that individual results may vary, and there is no assurance that a franchisee will earn as much as the amounts represented. The document also states that written substantiation of all financial information will be made available to you upon reasonable request. The Measured Stores average approximately 510 square feet. As of the end of Fiscal Year 2024, the Measured Stores had been open for an average of 22 months. The longest-operating Store of the Measured Stores had been open for 95 months, and the shortest-operating Store of the Measured Stores had been open for 12 months, as of the end of Fiscal Year 2024. The products offered are the same as those to be offered and sold by the franchised 7 Brew Stores, and the Measured Stores significantly reflect the standard 7 Brew Store prototype.