What was the median Store-Level EBITDAR margin for 7 Brew during Fiscal Year 2024?

According to 7 Brew's 2025 Franchise Disclosure Document, the median Store-Level EBITDAR margin for franchised stores during Fiscal Year 2024 was 28.87%. The FDD also states that 44% of the 162 franchised stores exceeded the average Store-Level EBITDAR margin of 28.99% during the same period.

Store-Level EBITDAR is calculated by subtracting Total Labor Expense, Total Operating Expense, and Total Loyalty & Store Marketing Expense from Gross Profit. These expenses are defined within the FDD to provide clarity on what is included in these calculations. Total Labor Expense includes store-level payroll, benefits, payroll taxes, and bonus expenses for the general manager and other employees, but excludes area manager salaries or incentives. Total Operating Expense includes equipment, supplies, cash-handling, credit-card processing, repairs, maintenance, third-party commissions, delivery fees, outside services, insurance, and utilities, but excludes royalties and marketing expenses. Total Loyalty & Store Marketing Expense includes expenses related to the loyalty program, community outreach, and store-level marketing, but excludes Brand Fund contributions.

For a prospective 7 Brew franchisee, understanding the components of Store-Level EBITDAR is crucial for assessing potential profitability. The document specifies that Store-Level EBITDAR does not account for certain labor costs or other expenses excluded from the definitions of Total Labor Expense and Total Operating Expense. It is also before interest, taxes, depreciation, amortization, and rent expense. This means that the actual profit a franchisee realizes may differ significantly from the Store-Level EBITDAR margin, depending on factors such as rent costs, financing terms, and tax liabilities.

It is important to note that the FDD also provides financial performance representations for company-owned stores and a combined group of company-owned and franchised stores (referred to as "Measured Stores"). The median Store-Level EBITDAR margin for the 18 company-owned stores was 32.09%, while the median for all 180 Measured Stores was 29.34%. These figures can provide additional context for evaluating the potential financial performance of a 7 Brew franchise. A prospective franchisee should carefully review all of the financial performance representations in the FDD and consider their own specific circumstances when making an investment decision.