7 BREW Franchise
Cost, fees, owner earnings, closure rate and litigation for a 7 BREW franchise — pulled from the franchisor's own public FDD (2021), not its sales material.
Disclosure honesty
7 BREW discloses earnings (Item 19) — but the grade is how honestly. We graded it D.
What their own earnings claim actually says
Discloses average/median total sales for 320 measured stores (FY2025): $2,658,575 avg, $2,569,134 median. Separates franchised ($2,646,063 avg) vs company stores ($2,820,145 avg). High performer: $6.4M; low: $836K. No net income/profit data disclosed.
What a 7 BREW franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $35,000 | Item 5 — paid up front, before you open |
| Royalty | 5.5% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 2% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 7.5% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $940,500 – $2,283,500 | Item 7 — franchisor's own low/high estimate |
Tiered royalty (4.5%-7% based on weekly sales); 2% brand fund; 0.25% tech fee; multiple pass-through/reimbursement fees including audit, legal, indemnification.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
7 BREW system size and owner turnover
| Total outlets | 602 |
| Ceased operations | 0 |
| Terminated by franchisor | 0 |
| Transferred to new owners | 28 |
| Closure rate | 0.0% of outlets |
Zero terminations/non-renewals in 3 years; 28 transfers in 2025 suggest ownership changes but retention stable.
From Item 20 of the FDD 2021. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is 7 BREW worth it? — how it compares to 32 similar franchises
| Ongoing fees | 7.5% of sales | lower than most (median 8%) |
| Startup cost | from $940,500 | pricier than 94% of peers |
| Disclosure honesty | Grade D | less honest than most of the category |
| Closure rate | 0.0% of outlets | better than most (median 5.6%) |
| Disclosed lawsuits | 0 | fewer than most |
Benchmarked against every coffee & donuts franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a 7 BREW
The franchisor's framing: Discloses average/median total sales for 320 measured stores (FY2025): $2,658,575 avg, $2,… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
7 BREW franchise — frequently asked
- How much does a 7 BREW franchise cost?
- The FDD lists a total initial investment of about $940,500–$2,283,500, including a $35,000 initial franchise fee.
- How much do 7 BREW franchise owners make?
- Discloses average/median total sales for 320 measured stores (FY2025): $2,658,575 avg, $2,569,134 median. Separates franchised ($2,646,063 avg) vs company stores ($2,820,145 avg). High performer: $6.4M; low: $836K. No net income/profit data disclosed. We grade this disclosure D for honesty.
- What are the 7 BREW franchise fees?
- 7 BREW's FDD discloses a $35,000 initial franchise fee, a 5.5% royalty on gross sales, a 2% advertising-fund contribution, for roughly 7.5% of gross sales in recurring fees before rent, labor, or debt service. Tiered royalty (4.5%-7% based on weekly sales); 2% brand fund; 0.25% tech fee; multiple pass-through/reimbursement fees including audit, legal, indemnification.
- What is the 7 BREW franchise profit margin?
- 7 BREW does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: Discloses average/median total sales for 320 measured stores (FY2025): $2,658,575 avg, $2,569,134 median. Separates franchised ($2,646,063 avg) vs company stores ($2,820,145 avg). High performer: $6.4M; low: $836K. No net income/profit data disclosed. Recurring fees alone take about 7.5% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the 7 BREW franchise failure rate?
- Zero terminations/non-renewals in 3 years; 28 transfers in 2025 suggest ownership changes but retention stable.
- How many 7 BREW locations are there?
- 7 BREW's FDD reports 602 total outlets, with 0 that ceased operations in the most recent reporting year and 28 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does 7 BREW have complaints or lawsuits?
- 7 BREW discloses no material litigation in Item 3 of the filing we reviewed. That's a positive signal, though it covers only what the franchisor is required to report.
- Is a 7 BREW franchise worth it?
- It depends on the numbers, not the pitch. 7 BREW scores D on disclosure honesty, carries about 7.5% of sales in ongoing fees. Get the real owner take-home before you sign.
Own a 7 BREW? Add your real numbers (anonymous)
We publish only aggregated benchmarks — never your name. Contribute and we'll show you how your numbers compare.
Compare 7 BREW to similar franchises
See all franchises ranked by disclosure honesty →
Source: WI DFI Franchise Registration (2021). FranchiseValidate is independent and not affiliated with 7 BREW or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.