7 Brew is a fast-growing drive-thru coffee franchise known for its premium drinks, friendly service, and efficient operations. Established in 2017, it offers coffee, teas, smoothies, and energy drinks with a customer-first focus. The initial investment ranges from $887,000 to $1.85 million, and franchisees need a net worth of $1 million and $300,000 in liquid assets. With average annual sales of $2.36 million per location, 7 Brew offers strong profit potential. Its streamlined application process and proven business model make it a great opportunity for investors.
7 Brew Franchise Requirements
- Net Worth: You need at least $500,000.
- Liquid Assets: Have $200,000 in cash or easily accessible funds.
- Franchise Fee: Pay $35,000 to start.
- Total Investment: Be ready to spend between $890,000 and $1.93 million.
- Ongoing Fees: Pay 4.5% to 7% of sales as royalties and 2% for advertising.
7 Brew Franchise Cost Guide
Investing in a 7 Brew franchise offers a promising opportunity in the rapidly growing drive-thru coffee industry. Understanding the associated costs and financial commitments is crucial for potential franchisees. This article provides a comprehensive breakdown of the expenses involved in opening and operating a 7 Brew franchise.
Initial Franchise Fee
To operate under the 7 Brew brand, franchisees are required to pay an initial franchise fee, which grants access to the company’s trademarks, established business model, and support systems.
- First Store: $35,000
- Each Additional Store: $10,000
Note: A minimum commitment of two stores is required, resulting in an initial fee of $45,000.
Total Estimated Initial Investment
The total investment encompasses various expenses necessary to establish the franchise. These costs can vary based on factors such as location, store size, and local market conditions.
- Estimated Range: $887,000 to $1,849,000
This estimate includes expenses such as construction, equipment, initial inventory, and other startup costs.
Breakdown of Initial Seven Brew Investment Costs
A detailed breakdown of the initial investment is as follows:
- Development Fee and Initial Franchise Fee: $45,000
- Rent and Security Deposit: $5,000 to $20,000
- Building/Build-Out Costs: $315,500 to $439,000
- Site Development Costs: $229,000 to $784,000
- Architectural and Engineering Fees: $10,000 to $45,000
- Store Equipment, Fixtures, and Furniture: $135,000 to $217,000
- Signs: $25,000
- Point-of-Sale System: $15,000 to $25,000
- Opening Inventory, Supplies, and Uniforms: $27,000 to $40,000
- Business and Operating Permits: $2,500 to $25,000
- Initial Training Travel & Living Expenses: $25,000 to $50,000
- Utilities: $750 to $3,000
- Insurance: $2,550 to $5,500
- Marketing Start-Up Expense: $25,000 to $50,000
- Additional Funds (3 Months): $25,000 to $75,000
Ongoing Fees
Beyond the initial investment, franchisees are subject to ongoing fees that support the continued operation and marketing of the franchise.
- Royalty Fee: 4.5% to 7% of gross sales
- Advertising Fee: 2% of gross sales
These fees contribute to brand support, marketing efforts, and the use of the franchise’s trademark and resources.
Financial Requirements for Franchisees
Prospective franchisees must meet certain financial criteria to ensure they can support the investment and operational costs.
- Minimum Net Worth: $1 million
- Liquid Assets: At least $300,000
These requirements ensure that franchisees have the financial stability necessary for success.
Profit Potential
Understanding the potential return on investment is crucial for prospective franchisees.
- Average Gross Sales per Location: Approximately $2,358,000 annually
- Estimated Operating Profit Margin: 15%
- Estimated Annual Operating Profit: Around $354,000
These figures can vary based on location, management efficiency, and market conditions.
Financing Options
7 Brew may offer financing options or have relationships with third-party lenders to assist with:
- Franchise Fees
- Startup Costs
- Equipment Purchases
Prospective franchisees should inquire directly with 7 Brew for detailed information on available financing support.
Training and Support
7 Brew provides comprehensive training programs to ensure franchisees and their staff are well-prepared.
- Store Owner Training: 2 days
- Manager Training: 14 days
- Employee Training: 3 days
Training covers various aspects of operations, customer service, and management to promote successful franchise operation.
How much does a 7 Brew franchise owner make?
Owning a 7 Brew franchise can be a profitable venture. In 2022, the average gross sales per location were approximately $2.3 million, with the top-performing store exceeding $3.1 million.
Assuming an operating profit margin of 15%, a franchisee could expect an annual operating profit of around $345,000. However, profit margins can vary based on factors such as location, management efficiency, and local market conditions.
It’s important to note that these figures are estimates, and actual earnings can differ. Prospective franchisees should conduct thorough research and consult with current franchise owners to gain a clearer understanding of potential earnings.
For more detailed information on franchise costs and earnings, consider reviewing the 7 Brew Franchise Disclosure Document (FDD) or consulting with a franchise advisor.
Conclusion
Investing in a 7 Brew franchise requires a substantial financial commitment, including initial fees, ongoing royalties, and adherence to financial qualifications.
However, with a robust support system and a proven business model, franchisees have the potential to achieve significant profitability in the growing drive-thru coffee market. Prospective investors should conduct thorough due diligence and consult with 7 Brew representatives to fully understand the financial and operational commitments involved.