What is the deadline for 7 Brew franchisees to pay the Royalty fee each week?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
ousand Dollar ($25,000) Initial Franchise Fee within five (5) days after the date on which you open the Store for business. The Initial Franchise Fee is not refundable under any circumstances.
B. Royalty
You agree to pay us, on or before Friday of each calendar week (the "Payment Day"), a royalty ("Royalty") equal to:
- (i) four and one-half percent (4.5%) of the Store's Gross Sales during the preceding calendar week if the Store's Gross Sales during such preceding calendar week were less than Twenty-Thousand Dollars ($20,000);
- (ii) five and one-half percent (5.5%) of the Store's Gross Sales during the preceding calendar week if the Store's Gross Sales during such preceding calendar week were between Twenty-Thousand Dollars ($20,000) and Twenty-Five Thousand Dollars ($25,000); and
- (iii) seven percent (7%) of the Store's Gross Sales during the preceding calendar week if the Store's Gross Sales during such preceding calendar week were more than Twenty-Five Thousand Dollars ($25,
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, franchisees must pay their royalty fees on or before Friday of each calendar week. This Payment Day is the deadline for remitting the royalty payment to 7 Brew. The royalty is calculated based on the store's gross sales during the preceding calendar week. The calendar week currently begins on Monday and ends on Sunday; however, 7 Brew has the right to change the first and last days of each calendar week for royalty calculation purposes, provided they give notice to the franchisee.
The royalty fee percentage varies depending on the store's gross sales. If the store's gross sales are less than $20,000, the royalty is 4.5%. If gross sales are between $20,000 and $25,000, the royalty is 5.5%. For gross sales exceeding $25,000, the royalty is 7%.
In addition to the royalty fee, 7 Brew franchisees may also be required to pay a weekly technology fee, which is due at the same time and in the same manner as the royalty, unless otherwise specified by 7 Brew. Franchisees should ensure they understand how gross sales are defined and calculated, as this directly impacts the royalty fee owed to 7 Brew.