What was the median Total Operating Expense for 7 Brew during Fiscal Year 2024?

According to 7 Brew's 2025 Franchise Disclosure Document, the median Total Operating Expense for franchised stores during Fiscal Year 2024 was 8.83%. Total Operating Expense includes costs related to equipment, supplies, cash handling, credit card processing, repairs, maintenance, third-party commissions and delivery fees, outside services, insurance, and utilities. Royalties and marketing expenses are excluded from this calculation.

For a prospective franchisee, this figure represents the midpoint of operating expenses among the 162 franchised 7 Brew stores analyzed. It means that half of the franchisees had operating expenses higher than 8.83% of gross sales, while the other half had lower expenses. It is important to note that this is a median, not an average, so it is less susceptible to distortion by extremely high or low values.

It is also useful to compare this median to the average Total Operating Expenses for franchised stores, which was 8.60% with 54% of stores exceeding this average. This suggests that the operating expenses are fairly consistent across the franchise system. A prospective franchisee should carefully review the components of operating expenses to understand which costs they can control and how they might optimize their spending to improve profitability. Understanding these expenses is crucial for developing a sound business plan and managing the financial health of their 7 Brew franchise.