What was the weighted average remaining lease term for 7 Brew as of December 25, 2022?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
erating lease liability, which was 6.5% and 6.0% for the years ended December 31, 2023 and December 25, 2022, respectively. The weighted average remaining lease term is approximately 2.6 years, 3.34 years and 1.3 years at December 29, 2024, December 31, 2023, and December 25, 2022, respectively.
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| | Operating Leases | |--------------------------------------------------------------------------
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 82)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the weighted average remaining lease term as of December 25, 2022, was approximately 1.3 years. This figure reflects the average length of time left on the leases for 7 Brew's office spaces at that specific point in time.
For a prospective franchisee, this information provides insight into the duration of 7 Brew's lease commitments and potentially the stability of their operational locations. A shorter weighted average remaining lease term, such as 1.3 years, might indicate that 7 Brew was operating with relatively short-term lease agreements or had recently renewed or entered into new leases that had not yet significantly extended the average term.
It's important to note that this figure pertains to 7 Brew's corporate leases and not necessarily the leases of individual franchise locations. Franchisees will need to secure their own locations and negotiate lease terms independently. However, understanding the franchisor's lease strategy and average terms can offer a broader context for assessing the real estate aspect of the franchise system. The 2025 FDD also indicates that the company used an incremental borrowing rate of 6.0% to calculate the operating lease liability as of December 25, 2022.