Did 7 Brew receive any revenue during 2024 from selling or leasing items/services directly to franchisees or from third-party suppliers based on franchisee dealings, other than the technology subscription reimbursement?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
and their costs.
Included in the other revenue reported in our audited financial statements is the $2,785,245 that we received from our franchisees during 2024 as reimbursement for technology subscription services, the costs of which we paid on our franchisees' behalf to certain unaffiliated third-party vendors (who make the services available directly to our franchisees). This represents 6.4% of our total 2024 revenue of $43,519,728. Otherwise, we did not receive any revenue during 2024 either from selling or leasing any items or services directly to our franchisees or from third-party suppliers on account of their business dealings with franchisees. Our affiliates CTAR, Inc. and 7 Energy LLC received total revenue of $31,933,577 during 2024 from (i) selling directly to our franchisees the modular buildings for their Stores, coffee equipment, point-of-sale systems, card readers, and small-wares and/or (ii) selling into the supply chain (for resale to our franchisees through independent distributors) certain brands of energy drinks. And, our affiliate Brew Culture Buying Group LLC received total cash payments of $6,456,179 during 2024 from unaffiliated suppliers on account of those suppliers' sales of certain beverages, ingredients, packaging, and other items t
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 27–32)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the company received $2,785,245 from franchisees in 2024 as reimbursement for technology subscription services, representing 6.4% of its total revenue of $43,519,728. These technology services are provided to franchisees directly by unaffiliated third-party vendors, but 7 Brew pays the vendors on behalf of the franchisees. Aside from this reimbursement, 7 Brew states that it did not receive any other revenue during 2024 from selling or leasing items/services directly to franchisees or from third-party suppliers based on franchisee dealings.
However, the FDD indicates that 7 Brew's affiliates, CTAR, Inc. and 7 Energy LLC, received a combined $31,933,577 in revenue during 2024 from selling modular buildings, coffee equipment, point-of-sale systems, card readers, and small-wares directly to 7 Brew franchisees. These affiliates also generated revenue by selling certain brands of energy drinks into the supply chain for resale to franchisees through independent distributors. Another affiliate, Brew Culture Buying Group LLC, received $6,456,179 in cash payments from unaffiliated suppliers due to those suppliers' sales of beverages, ingredients, packaging, and other items to 7 Brew franchisees.
It is important for a prospective franchisee to understand the relationships between 7 Brew and its affiliates, as well as the revenue streams generated through these relationships. While 7 Brew itself may not directly profit from selling or leasing all items to franchisees, its affiliates do, and these revenues are not included in 7 Brew's direct revenue figures. Franchisees should also note that 7 Brew and its affiliates have the right to derive revenue from suppliers in the form of various allowances, discounts, commissions, and other economic benefits based on the suppliers' dealings with 7 Brew stores. These amounts are the exclusive property of 7 Brew and its affiliates.