When does a prospective 7 Brew developer pay the development fee?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
hts Rider
We currently charge a development fee that you must pay in full when you sign the DRR. The development fee is the full $35,000 initial franchise fee for the first Store covered by the Franchise Agreement to which the DRR is attached, plus $10,000 for each additional Store you commit to develop (with a minimum 5-Store development commitment). This $10,000 per-Store payment is not a deposit toward future initial franchise fees. (The initial franchise fee is $25,000 for the second and each subsequent Store that you commit to develop.) We will identify the number of Stores you must develop, the deadlines for developing them, and the applicable development fee before signing the DRR. All development fees we received during 2024 were calculated using this same formula.
The development fee is not refundable under any circumstances. If you sign the DRR, pay the development fee, and then cannot find sites for 7 BREW Stores or choose for another reason not to perform (in which case we terminate the DRR), we have the right to keep the entire development fee and need not return any mon
Source: Item 5 — INITIAL FEES (FDD pages 14–16)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, a prospective developer must pay the development fee in full when signing the Development Rights Rider (DRR). The development fee covers the initial franchise fee of $35,000 for the first 7 Brew store, along with an additional $10,000 for each subsequent store the developer commits to opening. A minimum commitment of developing five stores is required. This per-store payment of $10,000 is not a deposit towards future initial franchise fees. The initial franchise fee for the second and each subsequent store is $25,000. Before signing the DRR, 7 Brew will specify the number of stores to be developed, the deadlines for their development, and the total applicable development fee. All development fees received during 2024 were calculated using this same formula.
It is important to note that the development fee is non-refundable under any circumstances. If a developer signs the DRR, pays the development fee, but then cannot find suitable sites or chooses not to proceed with the development for any reason, 7 Brew retains the entire development fee. This policy highlights the financial risk involved in committing to a multi-unit development agreement with 7 Brew.
Prospective franchisees should carefully consider their ability to meet the development schedule and secure suitable locations before signing the DRR and paying the development fee. Due diligence, including market research and site selection analysis, is crucial to mitigate the risk of losing the entire development fee. Understanding the specific development deadlines and the total financial commitment is essential before entering into a Development Rights Rider agreement with 7 Brew.