What is the initial franchise fee 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 circumstances.
If you purchase an existing Store from a franchisee, you will not pay an initial franchise fee. Instead, we have the right to receive a transfer fee from you or the selling franchisee (depending on your arrangement). That payment is not r
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 first 7 Brew store is $35,000. This fee is payable in a lump sum when the franchisee signs the Franchise Agreement. The FDD specifies that this initial franchise fee is part of the development fee. This fee is non-refundable under any circumstances.
For franchisees considering developing multiple 7 Brew stores, the initial franchise fee for the second and each subsequent store is $25,000. This payment is due within 5 days after the store opens for business. This is a fairly standard practice in franchising, where franchisors often offer reduced fees for additional units to incentivize multi-unit ownership.
It is important to note that if a prospective franchisee purchases an existing 7 Brew store from a current franchisee, they will not have to pay the initial franchise fee. Instead, a transfer fee will be applicable, paid either by the buyer or the seller, depending on their agreement. This transfer fee, like the initial franchise fee, is also non-refundable. Franchisees should carefully consider these financial obligations and understand the terms of the Franchise Agreement before signing.