For 7 Brew franchises, what components are included in the Cost of Goods Sold calculation?

According to 7 Brew's 2025 Franchise Disclosure Document, the Cost of Goods Sold (COGS) for both franchised and company-owned stores includes specific items that directly contribute to the products sold. This is an important figure for franchisees to understand as it directly impacts their profitability.

The FDD specifies that COGS includes the carrying value of all inputs to goods sold. These inputs encompass a range of ingredients and supplies necessary to create 7 Brew's menu items. Specifically, the listed items are coffee, dairy and alternative milks, sauces, syrups, teas, mixes, canned beverages, cups, and straws. It also includes supplies for sales.

Understanding exactly what is included in the Cost of Goods Sold allows a franchisee to accurately forecast expenses and manage inventory. By carefully tracking these costs, franchisees can better assess the financial performance of their 7 Brew location and identify areas for potential cost savings or increased efficiency. This information, combined with other financial metrics provided in the FDD, offers a comprehensive view of the potential financial performance of a 7 Brew franchise.