When is the initial franchise fee due for the second and subsequent 7 Brew stores?
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 for the second and each subsequent store developed under a Development Rights Rider is $25,000. This fee is due within 5 days after the date the 7 Brew store opens for business. This fee is non-refundable under any circumstances.
This means that if a franchisee commits to opening multiple 7 Brew locations, they will pay a reduced initial franchise fee of $25,000 for each store after the first. However, this fee is not due until shortly after the store's opening, which could help franchisees manage their initial investment costs by delaying the payment.
It is important to note that this payment schedule applies specifically to stores developed under a Development Rights Rider. The initial franchise fee for the first store is $35,000 and is due when signing the Franchise Agreement. Prospective franchisees should carefully consider the implications of the Development Rights Rider and the associated payment schedule when planning their expansion strategy with 7 Brew.