What was the lowest Net Sales margin for any franchised 7 Brew store?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
- ii. Of the 162 Franchised Stores, 91 Stores (56%) exceeded the sample's average Net Sales margin of 97.05%. Net Sales are Gross Sales less discounts other than valid coupon credits and employee discounts. Median Net Sales margin for the 162 Franchised Stores during Fiscal Year
2024 was 97.20%. The highest Net Sales margin for any Franchised Store was 99.01%. The lowest Net Sales margin for any Franchised Store was 92.40%.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 61–73)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the lowest Net Sales margin for any franchised store was 92.40% during Fiscal Year 2024. The FDD also states that the average Net Sales margin for the 162 franchised stores was 97.05%, with the median at 97.20%. The highest Net Sales margin achieved by a franchised store was 99.01%.
Net Sales are calculated as Gross Sales less discounts other than valid coupon credits and employee discounts. Gross Sales include all revenue from beverages, food, merchandise, and services, minus sales taxes, coupon credits, and revenue from gift and loyalty cards. This means that even the lowest-performing store in the sample still retained over 92% of its gross sales after accounting for limited discounts.
For a prospective franchisee, this data point indicates a potential floor for Net Sales margin performance. While individual results may vary, understanding the range of Net Sales margins, from the lowest to the highest, can help in assessing the financial viability of a 7 Brew franchise. It's also important to consider factors that may influence Net Sales margins, such as location, operational efficiency, and local market conditions. Reviewing the performance of stores in similar markets could provide further insights.
It is important to note that these figures are based on historical data from existing franchised stores and may not be indicative of future performance. The FDD also specifies that these figures are based on internal unaudited historical data obtained through the Computer System. A prospective franchisee should conduct their own due diligence and consider consulting with financial advisors to assess the potential risks and rewards of investing in a 7 Brew franchise.