On what page of the 7 Brew Franchise Agreement can I find information about the Royalty fee?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
ousand Dollar ($25,000) Initial Franchise Fee within five (5) days after the date on which you open the Store for business. The Initial Franchise Fee is not refundable under any circumstances.
B. Royalty
You agree to pay us, on or before Friday of each calendar week (the "Payment Day"), a royalty ("Royalty") equal to:
- (i) four and one-half percent (4.5%) of the Store's Gross Sales during the preceding calendar week if the Store's Gross Sales during such preceding calendar week were less than Twenty-Thousand Dollars ($20,000);
- (ii) five and one-half percent (5.5%) of the Store's Gross Sales during the preceding calendar week if the Store's Gross Sales during such preceding calendar week were between Twenty-Thousand Dollars ($20,000) and Twenty-Five Thousand Dollars ($25,000);
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, details regarding the royalty fee can be found on page 97 of the Franchise Agreement. The royalty fee is paid weekly, on or before Friday of each calendar week. The amount varies based on the store's gross sales for the preceding week.
If a 7 Brew store's gross sales are less than $20,000, the royalty is 4.5% of gross sales. If gross sales are between $20,000 and $25,000, the royalty is 5.5%. For stores with gross sales exceeding $25,000, the royalty is 7%.
This tiered royalty structure means that as a 7 Brew franchisee's sales increase, so does the percentage paid in royalties. This is a fairly common practice in franchising, designed to align the franchisor's income with the franchisee's success. Prospective franchisees should carefully consider their projected sales volume to understand the potential royalty payments.