What is included in the 'Cost of Goods Sold' for a 7 Brew store?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
Cost of Goods Sold means the carrying value of all inputs to goods sold, including coffee, dairy and alternative milks, sauces, syrups, teas, mixes, canned beverages, cups and straws, and supplies for sales.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 61–73)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the Cost of Goods Sold (COGS) for both company-owned and franchised stores includes the carrying value of all inputs to goods sold. This encompasses a range of items essential for producing the beverages and other products 7 Brew offers.
Specifically, the COGS includes ingredients such as coffee, dairy and alternative milks, sauces, syrups, teas, and mixes. It also covers finished or pre-packaged goods like canned beverages. Additionally, the cost of disposable items like cups and straws, along with other supplies necessary for sales, are factored into the Cost of Goods Sold.
Understanding what comprises the Cost of Goods Sold is crucial for prospective franchisees as it directly impacts the store's profitability. By carefully managing these costs, franchisees can improve their gross profit margin and overall financial performance. The FDD indicates that for the 180 Measured Stores, the average Cost of Goods Sold margin was 26.31% during Fiscal Year 2024, with a median of 26.38%.