Was a Technology Fee charged to 7 Brew franchisees during Fiscal Year 2024?

According to 7 Brew's 2025 Franchise Disclosure Document, a Technology Fee was not charged to franchisees during the 2024 fiscal year. The FDD states that while 7 Brew has the right to require franchisees to pay a Technology Fee based on a percentage of gross sales, no such fee was actually charged during Fiscal Year 2024. This means that franchisees' earnings before interest, taxes, depreciation, amortization, and rent (EBITDAR) were not reduced by a Technology Fee expense during that period.

This information is relevant to prospective franchisees as it provides insight into the actual expenses incurred by existing 7 Brew franchise locations. While the Franchise Agreement allows 7 Brew to implement a Technology Fee, the fact that it was not charged in 2024 suggests that 7 Brew may be flexible in its application of this fee. It's important to note that 7 Brew retains the right to charge this fee in the future, so prospective franchisees should inquire about the likelihood of this fee being implemented and its potential impact on their profitability.

It is also important to understand that the figures provided in the FDD do not represent the actual amounts that the Measured Stores spent on technology and related expenses. The Technology Fee is separate from what individual stores may have spent on technology. The FDD clarifies that the EBITDAR calculation subtracts the Technology Fee from Store-Level EBITDAR, further emphasizing that the absence of the fee directly impacts the financial performance representation for that year. This distinction is crucial for franchisees to accurately assess their potential earnings and manage their technology-related expenses effectively.