What was the gross value of 7 Brew's property and equipment in the financial statements provided?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
6,454) | | (2,173,233) |
Note 2: Property and Equipment
Property and equipment, net consists of the following:
| Computers and software | $ | 338,722 | $ | 51,871 | $ | 40,581 |
|---|---|---|---|---|---|---|
| Leasehold improvements | 5,606 | - | - | |||
| Furniture and office equipment | 35,535 | 20,000 | 20,000 | |||
| Construction in progress | 23,876 | 6 | - | |||
| Software in development | 471,549 | 555,000 | - | |||
| Property and equipment, gross | 875,288 | 626,871 | 60,581 | |||
| Accumulated depreciation and amo |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 82)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the gross value of property and equipment is detailed in the balance sheets. The balance sheet from March 23, 2025, shows the gross property and equipment value as $875,288,000. The balance sheet from December 29, 2024, shows the gross property and equipment value as $626,871,000. The balance sheet from December 31, 2023, shows the gross property and equipment value as $60,581,000. These figures include items such as computers and software, leasehold improvements, furniture and office equipment, construction in progress, and software in development.
These values represent the historical cost of 7 Brew's property and equipment before accounting for depreciation and amortization. Depreciation and amortization are accounting methods used to allocate the cost of these assets over their useful lives. The accumulated depreciation and amortization are subtracted from the gross value to arrive at the net property and equipment value, which reflects the book value of these assets on the balance sheet.
Prospective franchisees should understand that these figures reflect 7 Brew's corporate assets and are not directly indicative of the investment required to set up an individual franchise location. However, understanding the company's asset base can provide insight into its financial health and investment in technology and infrastructure, which could indirectly benefit franchisees. Franchisees usually invest in their own equipment and property, so these numbers primarily reflect the franchisor's investments.