What items are included in the 'Cost of Goods Sold' calculation for a 7 Brew franchise?

According to 7 Brew's 2025 Franchise Disclosure Document, the Cost of Goods Sold (COGS) for both franchised and company-owned stores includes specific inputs to the goods sold. This calculation is important because it directly impacts the Gross Profit, which is Net Sales less the Cost of Goods Sold. A franchisee needs to understand exactly what expenses are included in COGS to accurately assess their profitability.

Specifically, the Cost of Goods Sold for 7 Brew includes the carrying value of all inputs to goods sold. These inputs encompass a range of items critical to the operation of the business. The items included are coffee, dairy and alternative milks, sauces, syrups, teas, mixes, canned beverages, cups and straws, and supplies for sales.

Understanding the components of the Cost of Goods Sold is crucial for a prospective 7 Brew franchisee. By carefully managing these costs, a franchisee can improve their gross profit margin and overall financial performance. The FDD also provides data on the average and median Cost of Goods Sold margin for both franchised and company-owned stores, allowing potential franchisees to benchmark their performance against existing stores.