How is the development fee for 7 Brew calculated?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 23–27)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the development fee is calculated based on the number of stores a franchisee commits to develop. When signing the initial Franchise Agreement and the Development Rights Rider (DRR), a franchisee must commit to developing a minimum of five 7 Brew stores. The total investment to begin operation with these development rights ranges from $894,000 to $2,178,500.
The development fee is the sum of the initial franchise fee for the first store, which is $35,000, plus an additional $10,000 for each subsequent store the franchisee commits to develop. This per-store payment of $10,000 is not a deposit towards future initial franchise fees. For example, if a franchisee commits to the minimum of five stores, the development fee would be $75,000, which includes the $35,000 initial franchise fee for the first store and $40,000 (4 stores x $10,000) for the additional four stores.
In the table outlining the estimated initial investment, the development fee and the first initial franchise fee are listed together as one line item. For a minimum 5-store commitment, this combined fee is $75,000, payable in a lump sum upon signing the Franchise Agreement and DRR. This payment is made directly to 7 Brew. It's important to note that beyond the development fee, no separate initial investment is required when signing the DRR.