When is the Development Fee and First Initial Franchise Fee due for a 7 Brew franchise?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of expenditure | Amount | Method of payment | When due | To whom payment is to be made |
|---|---|---|---|---|
| Development Fee and First Initial Franchise Fee (minimum 5-Store commitment) (Note 1) | $75,000 | Lump sum | Upon signing first Franchise Agreement and DRR | Us |
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 and first initial franchise fee are due upon signing the first Franchise Agreement and the Development Rights Rider (DRR). The total amount due at this time is $75,000, which must be paid in a lump sum to 7 Brew.
Notably, 7 Brew requires a minimum commitment to develop five stores when signing the initial Franchise Agreement and DRR. The development fee covers the initial franchise fee for the first store ($35,000) and an additional $10,000 for each subsequent store a franchisee commits to developing. This per-store payment does not act as a deposit towards future initial franchise fees.
Prospective franchisees should be aware of this upfront financial obligation and factor it into their initial investment calculations. Understanding the payment schedule and the non-refundable nature of most initial investments is crucial for financial planning when considering a 7 Brew franchise.