What is the initial franchise fee for a first 7 Brew store?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
ave been paid; and
- (7) you are not in default under any agreement with us, our affiliates, or principal suppliers and have met our other opening requirements.
5. Fees
A. Initial Franchise Fee
If this Agreement is for your first 7 BREW Store, you must pay us a Thirty-Five Thousand Dollar ($35,000) initial franchise fee (the "Initial Franchise Fee") when you sign this Agreement. However, if this Agreement is for your second or subsequent 7 BREW Store, you must pay us
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the initial franchise fee for a first store is $35,000. This fee is payable when the franchise agreement is signed. The FDD specifies that if the agreement is for a second or subsequent 7 Brew store, the initial franchise fee is $25,000, payable within five days of opening the store.
It is important to note that the initial franchise fee is non-refundable under any circumstances. This means that even if the franchisee is unable to open the store or terminates the agreement, the $35,000 fee will not be returned. This is a standard practice in the franchise industry, as the fee is intended to compensate the franchisor for the costs associated with granting the franchise, including training, site selection assistance, and other support services.
Prospective franchisees should carefully consider the implications of the non-refundable nature of the initial franchise fee before signing a franchise agreement. It is advisable to conduct thorough due diligence and seek professional advice to assess the risks and potential rewards of investing in a 7 Brew franchise. Understanding the terms and conditions of the franchise agreement, including the fees and payment schedules, is crucial for making an informed decision.