What is the definition of 'Gross Profit' for 7 Brew stores?

According to 7 Brew's 2025 Franchise Disclosure Document, Gross Profit is defined as Net Sales less Costs of Goods Sold. This is a standard calculation in business, representing the revenue remaining after deducting the direct costs associated with producing and selling the goods.

For a 7 Brew franchisee, understanding Gross Profit is crucial because it provides a clear picture of the profitability of each sale. It allows the franchisee to assess how efficiently they are managing their direct costs, such as the cost of coffee beans, dairy, syrups, and other supplies. By monitoring the Gross Profit margin, a franchisee can identify areas where they might be able to reduce costs or increase prices to improve profitability.

Furthermore, the FDD provides additional context by showing the average Gross Profit margin for both company-owned and franchised stores. For example, the average Gross Profit margin for the 162 Franchised Stores was 70.76% during Fiscal Year 2024, with a median of 70.92%. This benchmark allows a prospective franchisee to compare their own store's performance against the average and median, offering insights into potential areas for improvement. It's important to note that while these figures provide a useful reference, individual store performance can vary based on factors such as location, management, and local market conditions.