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What were the total costs and expenses for 7 Brew, including selling, general, and administrative expenses and other operating expenses?

7_Brew Franchise · 2025 FDD

Answer from 2025 FDD Document

12 |

Brew Culture Franchise, LLC Statement of Operations For the Period Ended 03/23/2025 (In thousands)

Unaudited 2025 YTD
Revenues 2023 110
Continual service fees, royalty fees, and other revenue 16,744
Franchise fees 492
Total Rever nues 17,236
Costs and E xpenses
Selling, general and administrative 4,180
Other operating expenses 5,156
Total Costs and Expenses 9,337
Income Fro m Operations 7,900
Other Incor ne
Interest income (158)
Total Other Income (158)
Net Income 8,057

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Source: Item 21 — FINANCIAL STATEMENTS (FDD page 82)

What This Means (2025 FDD)

According to 7 Brew's 2025 Franchise Disclosure Document, an unaudited profit and loss statement provides a snapshot of the brand's financial performance. For the period of 2023 YTD, 7 Brew reported total costs and expenses of $9,337. This figure includes two primary components: selling, general, and administrative expenses, which amounted to $4,180, and other operating expenses, which totaled $5,156. These expenses are crucial for understanding the operational costs associated with running the 7 Brew franchise system. These figures are presented in thousands.

Breaking down these costs, selling, general, and administrative expenses typically cover a range of overhead costs, such as salaries, rent, utilities, and other administrative functions necessary to support the franchise operations. Other operating expenses, on the other hand, may include costs directly related to the day-to-day operations of the business, such as advertising, marketing, and other costs associated with maintaining the brand's presence and supporting franchisees. Notably, advertising costs specifically are detailed elsewhere in the document, with approximately $4.1 million, $0.9 million, and $0.2 million spent for the years ended December 29, 2024, December 31, 2023, and December 25, 2022, respectively.

Prospective franchisees should carefully consider these expenses as they evaluate the financial viability of investing in a 7 Brew franchise. Understanding the breakdown of these costs can help franchisees anticipate their own potential expenses and assess the overall profitability of their franchise location. It's important to note that these figures are unaudited and represent a specific period, so franchisees should conduct their own due diligence and consult with financial professionals to develop realistic financial projections.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.