What expenses are included in 'Total Operating Expense' for 7 Brew stores?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
- vi. "Total Operating Expense" includes expenses such as equipment, supplies, cash-handling, credit-card processing, repairs, maintenance, third-party commissions and delivery fees, other outside services, insurance, and utilities.
Royalties and marketing expenses are excluded.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 61–73)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, 'Total Operating Expense' includes several specific expenses for both company-owned and franchised stores. These expenses encompass a range of operational costs necessary to run the business.
Specifically, 'Total Operating Expense' includes costs related to equipment, supplies, cash handling, and credit card processing. It also covers expenses for repairs, maintenance, third-party commissions, and delivery fees. Additionally, the category includes costs for other outside services, insurance, and utilities.
However, it's important to note that 'Total Operating Expense' for 7 Brew excludes royalties and marketing expenses. These are accounted for separately, which provides a clearer picture of the core operational costs versus franchise-related fees and promotional activities. Understanding which expenses are included and excluded is crucial for prospective franchisees to accurately forecast their potential profitability and manage their finances effectively.