Who is responsible for paying the transfer fee when purchasing an existing 7 Brew store?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
If you purchase an existing Store from a franchisee, you will not pay an initial franchise fee. Instead, we have the right to receive a transfer fee from you or the selling franchisee (depending on your arrangement). That payment is not refundable.
Source: Item 5 — INITIAL FEES (FDD pages 14–16)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, when a franchisee purchases an existing 7 Brew store from another franchisee, they will not pay the initial franchise fee. Instead, 7 Brew has the right to collect a transfer fee. The responsibility for paying this transfer fee—whether it falls on the buyer or the seller—depends on the specific arrangement made between the two franchisees involved in the transaction. This transfer fee is non-refundable.
This arrangement differs from the initial franchise fee required when opening a new 7 Brew store. For a new store, the initial franchise fee is $35,000 for the first store and $25,000 for each subsequent store developed under a Development Rights Rider. This fee is paid to 7 Brew and is also non-refundable.
Prospective franchisees should clarify with 7 Brew during their due diligence who is responsible for the transfer fee in a typical transaction. Understanding this detail is crucial for budgeting and negotiating the terms of purchasing an existing 7 Brew store.