When is the initial franchise fee due for the first 7 Brew store?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
Agreement
You must pay us a $35,000 initial franchise fee in a lump sum when you sign the Franchise Agreement for your first 7 BREW Store (this initial franchise fee is part of the development fee described below). The initial franchise fee for the 2nd and each subsequent 7 BREW Store you develop under a Development Rights Rider to the Franchise Agreement is $25,000. That payment is due within 5 days after the date on which you open the 7 BREW Store for business. The initial franchise fee is not refundable under any circ
Source: Item 5 — INITIAL FEES (FDD pages 14–16)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the initial franchise fee of $35,000 for the first store is due in a lump sum when the franchisee signs the Franchise Agreement. This fee is considered part of the development fee. The FDD specifies that this initial franchise fee is non-refundable under any circumstances.
For franchisees developing multiple 7 Brew stores under a Development Rights Rider (DRR), the initial franchise fee for the second and subsequent stores is $25,000. This payment is due within 5 days after the store opens for business. The development fee, which includes the initial franchise fee for the first store and additional fees for subsequent stores, is paid in full when the franchisee signs the DRR.
It's important to note that if a franchisee purchases an existing 7 Brew store from another franchisee, they will not pay an initial franchise fee. Instead, a transfer fee is applicable, which is paid by either the buyer or the seller, depending on their agreement. This transfer fee is also non-refundable. Prospective franchisees should carefully consider these payment terms and the non-refundable nature of the fees before signing any agreements.