What was the range of short-term leases for 7 Brew for the 2022 %:8:B7:G period?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
7,189 | | 621,533 | _ | - | | | $ | 8,624,614 | $ | 4,155,938 | $ | 1,936,345 |
Note 4: Leases
Operating Leases
The Company currently leases office space with terms expiring through July 2027. All leases are classified as operating leases.
Total lease expense for the years ended December 29, 2024, December 31, 2023 and December 25, 2022, was $0.30 million, $0.06 million, and $0.03 million, respectively, and included in Selling, general and administrative expenses in the accompanying Statements of Operations.
Cash paid for amounts included in the measurement of operating lease liabilities for the years ended December 29, 2024, December 31, 2023, and December 25, 2022 was $0.23 million, $0.06 million and $0.03 million, respectively. The Company used its incremental borrowing rate as the discount rate to calculate the operating lease liability, which was 6.5% and 6.0% for the years ended December 31, 2023 and December 25, 2022, respectively. The weighted average remaining lease term is app
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 82)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, 7 Brew's short-term leases are addressed in Note 4, which discusses operating leases. For the year ended December 25, 2022, the total lease expense was $0.03 million. The weighted average remaining lease term was approximately 1.3 years at December 25, 2022.
In simpler terms, 7 Brew spent $30,000 on leases in 2022. The company's leases had an average remaining term of about 1 year and 4 months.
This information is relevant to potential franchisees as it provides insight into the company's lease obligations and the duration of those leases. While this information pertains to the company's leases, it does not specify the range of short-term leases for 7 Brew franchises. A prospective franchisee should ask the franchisor about the typical lease terms and costs for franchise locations.