What is included in the 'Cost of Goods Sold' calculation for a 7 Brew franchise?

According to 7 Brew's 2025 Franchise Disclosure Document, the Cost of Goods Sold (COGS) calculation includes specific items that directly contribute to the products sold. For a 7 Brew franchise, this encompasses the 'carrying value of all inputs to goods sold.' This definition provides clarity for franchisees in understanding what expenses are factored into this critical financial metric.

Specifically, the COGS for 7 Brew includes coffee, dairy and alternative milks, sauces, syrups, teas, mixes, canned beverages, cups, straws, and supplies for sales. These items represent the core ingredients and packaging necessary to create and serve 7 Brew's menu offerings. By outlining these components, 7 Brew ensures transparency in how the Cost of Goods Sold is determined, allowing franchisees to accurately assess their profitability and manage their expenses effectively.

The FDD indicates that, for the 162 Franchised Stores analyzed, the average Cost of Goods Sold margin was 26.30% during Fiscal Year 2024, with a median of 26.37%. For the 18 Company Stores, the average Cost of Goods Sold margin was 26.40% with a median of 26.53%. Understanding these benchmarks can help a new franchisee compare their store's performance against existing locations. It's important to note that these figures are based on historical data and may not guarantee future performance, as various factors can influence these costs.