When is the Management Fee due for a 7 Brew franchise?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
| Column 1 | Column 2 | Column 3 | Column 4 |
|---|---|---|---|
| Type of Fee(1, 6) | Amount(2) | Due Date | Remarks |
| Management Fee | Up to 10% of Gross Sales, plus any out of-pocket expenses incurred in connection with Store's management | As incurred | Due if we assume Store's management in certain situations. |
Source: Item 6 — OTHER FEES (FDD pages 16–23)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the Management Fee is due 'As incurred.' The Management Fee is up to 10% of Gross Sales, plus any out-of-pocket expenses incurred in connection with the Store's management. This fee is only charged if 7 Brew assumes the Store's management in certain situations.
This means that a 7 Brew franchisee will only be required to pay this fee if the franchisor steps in to manage the store. The fee covers 7 Brew's costs and expenses related to managing the store, in addition to a percentage of the store's gross sales.
As the fee is 'as incurred', the franchisee should ensure they understand the circumstances under which 7 Brew might assume management of the store, and how frequently they will be billed for these management fees. It is important to maintain open communication with 7 Brew to avoid surprises regarding this fee.