What was the member's equity for 7 Brew as of December 26, 2021?

According to 7 Brew's 2025 Franchise Disclosure Document, the member's equity as of December 26, 2021, was $389,843. This figure represents the ownership stake in the company held by its member at that specific point in time. It reflects the cumulative investment and retained earnings (or losses) of the company up to that date.

It's important to note that this figure is a snapshot in time and can fluctuate significantly based on the company's financial performance. The document also shows that 7 Brew experienced a net loss of $2,563,076, which resulted in a member's deficit of ($2,173,233) by December 25, 2022. This indicates that the company's financial situation changed considerably in the year following the reported member's equity.

For a prospective franchisee, this information provides insight into the financial health and stability of 7 Brew during its early stages. While the initial member's equity was positive, the subsequent net loss and member's deficit highlight the inherent risks and potential challenges in the franchise's development. Reviewing these figures in conjunction with more recent financial statements would give a better understanding of the franchise's overall financial trajectory.

It is also important to consider the deferred franchise fees. As of December 26, 2021, 7 Brew had $12.9 million in deferred franchise fees, which represents initial franchise fees received for which the company had not yet performed all the related services. This deferred revenue is a liability on the balance sheet and will be recognized as revenue as 7 Brew fulfills its obligations to the franchisees.