What expenses are included in 'Total Operating Expense' for a 7 Brew store?

According to 7 Brew's 2025 Franchise Disclosure Document, 'Total Operating Expense' includes several categories of expenses for both company-owned and franchised locations. These expenses encompass a range of operational costs necessary to run the business. Specifically, these include expenses for equipment, supplies, cash-handling, and credit card processing.

Additionally, the 'Total Operating Expense' category covers costs related to repairs and maintenance, which are essential for maintaining the physical condition of the store and its equipment. It also includes third-party commissions and delivery fees, reflecting expenses incurred from outsourcing certain services or offering delivery options to customers. Furthermore, the category accounts for other outside services, insurance coverage, and utility expenses, such as electricity, water, and gas.

It is important to note that certain expenses are explicitly excluded from 'Total Operating Expense'. Royalties, which are payments made to the franchisor, and marketing expenses are not included in this category. This distinction provides a clearer picture of the direct operational costs of running a 7 Brew store, separate from franchise fees and marketing contributions. Understanding which expenses are included and excluded is crucial for prospective franchisees to accurately assess their potential profitability and manage their finances effectively.