What was the total amount of advances that 7 Brew had with its parent company as of December 29, 2024?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
audit.
Melville, New York May 28, 2025
Balance Sheets
| December 29, December 31, 2024 2023 | December 25, 2022 | |||||
|---|---|---|---|---|---|---|
| Assets | ||||||
| Current Assets | ||||||
| Cash | $ | 22,818,340 | $ | 2,111,088 | $ | 3,644,278 |
| Accounts receivable | 1,695,688 | 847,389 | 711,454 | |||
| Prepaid expenses and other current assets | 1,820,442 | _ | 220,148 | 43,610 | ||
| Total current assets | 26,334,470 | 3,178,625 | 4,399,342 | |||
| Other Assets | ||||||
| Property and equipment, net | 791,000 | 597,821 | 51,174 | |||
| Right-of-use asset - operating lease | 572,504 | 774,427 | 35,713 | |||
| Advances to Parent | 34,519,197 | 30,569,574 | 17,569,596 | |||
| Total other assets | 35,882,701 | 31,941,822 | 17,656,483 | |||
| Total assets | $ | 62,217,171 | $ | 35,120,447 | $ | 22,055,825 |
| Liabilities and Member's Equity (Deficit) | ||||||
| Current Liabilities | ||||||
| Accounts payable and accrued expenses | $ | 8,624,614 | $ | 4,155,938 | $ | 1,936,345 |
| Current portion of deferred franchise fees | 847,000 | 530,558 | 216,045 | |||
| Current portion of operating lease liability | 223,028 | 189,373 | 30,457 | |||
| Total current liabilities | 9,694,642 | 4,875,869 | 2,182,847 | |||
| Other Liabilities | ||||||
| Deferred franchise fees | 34,348,397 | 30,236,200 | 22,040,955 | |||
| Operating lease liability | 397,692 | 620,720 | 5,256 | |||
| Total other liabilities | 34,746,089 | 30,856,920 | 22,046,211 | |||
| Member's Equity (Deficit) | ||||||
| Member's equity (deficit) | 17,776,440 | _ | (612,342) | (2,173,233) | ||
| Total liabilities and memb |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 82)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, as of December 29, 2024, the total amount of advances to its Parent company was $34,519,197. This figure is listed as an asset on 7 Brew's balance sheet. Advances to the parent company represent funds that 7 Brew has provided to its parent, Brew Culture, LLC.
These advances are classified as "Other Assets" on the balance sheet, along with property and equipment, net ($791,000) and right-of-use asset - operating lease ($572,504). The advances to the Parent company make up the bulk of the total other assets, which amount to $35,882,701.
For a prospective franchisee, this indicates a financial relationship between 7 Brew and its parent company. It's important to understand the nature of these advances, including the terms of repayment, interest rates (if any), and the purpose for which the parent company is using these funds. High levels of financial transactions with the parent entity may warrant closer scrutiny to ensure the financial stability of the franchise.