Risk Score
Pending analysis
Investment Range
$890,300 - $1,934,500
Franchise Fee
$25,000
Total US Locations
180
Business Summary
7 BREW® operates high-capacity drive-thru, quick-serve coffee stores. The stores primarily offer and sell coffee, coffee-based, and other beverages to customers. The concept emphasizes an extensive and customizable beverage offering, energetic and friendly staff, and efficient, quick service, all within a distinctive building design featuring a small footprint, blue lighting, and multiple drive-thru lanes.
Corporate History
The 7 BREW® system originally opened for business in February 2017. Brew Culture, LLC, the direct parent company of Brew Culture Franchise, LLC, acquired control of the 7 BREW® system and began operating multiple 7 BREW® Stores in January 2020. Brew Culture Franchise, LLC itself was formed in February 2021 as a Wyoming limited liability company and started offering franchises and development rights for 7 BREW® Stores in March 2021. While the franchisor entity has never operated a 7 BREW® Store directly, its parent company has operational experience with the brand.
Financial Overview
Investment Range
$890,300 - $1,934,500
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$35,000
Royalty %
7%
Marketing %
1%
Equipment Costs (Low)
$732,500
Equipment Costs (High)
$1,621,000
Working Capital
$50,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Brew Culture Franchise, LLC has received an unqualified audit opinion on its financial statements. However, the franchisor's financial condition, as shown in its financial statements, raises questions about its ability to provide services and support to franchisees. The franchisor also has a limited operating history, as it has not been in existence for three full years. In 2022, Brew Culture Franchise, LLC had a negative member's equity of -$1,876,779, though this improved to $797,966 by the end of 2023. Additionally, the company has significant advances to its parent company, totaling over $30 million in 2023.
Financing Details
Brew Culture Franchise, LLC does not offer any direct or indirect financing to its franchisees. The company also does not guarantee any notes, leases, or other financial obligations for its franchisees. Therefore, 7 BREW® franchisees must arrange their own funding to cover the initial investment and operating costs.
Performance Metrics
Total US Locations
180
Franchised Units
161
Corporate Units
19
Avg Square Footage
510
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Brew Culture Franchise, LLC has no litigation to report in Item 3 of its FDD. This means that neither Brew Culture Franchise, LLC, nor any person identified in Item 2 (such as officers or directors), nor any affiliate offering franchises under the franchisor's principal trademark, has been involved in any material administrative, criminal, or civil actions, including those alleging franchise, antitrust, or securities law violations, fraud, or unfair practices. There are no pending or concluded legal proceedings that require disclosure.
Bankruptcy History
Brew Culture Franchise, LLC has no bankruptcy history to report. This means that neither the franchisor, its affiliates, its predecessors, nor its officers or general partners have filed for bankruptcy, obtained a discharge of debts under bankruptcy code, or been principal officers in a company that did so within the last 10 years.
Agreement Terms
Initial Term
15 years
Renewal Term
5 years
Renewal Conditions
To renew their 7 BREW® franchise, franchisees must first request and complete a business review with Brew Culture Franchise, LLC between six and nine months before their current agreement ends, then formally notify the franchisor of their intent to renew at least three months prior to expiration. They must have substantially complied with all contractual obligations and brand standards during the initial term and continue to do so until the term ends. Additionally, franchisees are required to remodel and upgrade their store to meet current specifications for new 7 BREW® Stores and pay a $10,000 successor-franchise fee. They must also sign Brew Culture Franchise, LLC's then-current form of franchise agreement and a general release of claims.
Training & Support Program
Franchisor Assistance
Brew Culture Franchise, LLC provides comprehensive support to its franchisees both before and after opening. Before opening, 7 BREW® offers assistance with site selection review, provides template store plans (though franchisees are responsible for compliance with local laws), and conducts initial training for owners, managers, and hourly employees. An optional 'opening team' may also be sent to support the store launch. Ongoing assistance includes advisory and recommendations on operations, purchasing, training methods, accounting, advertising, and pricing. Franchisees receive access to the Operations Manual, modifications to Brand Standards, and use of 7 BREW®'s trademarks and confidential information. The franchisor also maintains a Brand Fund for system-wide advertising and marketing programs, and regularly inspects and monitors store operations.
Initial Training Hours
142
Training Location
Fayetteville, AR
Ongoing Support
After opening, 7 BREW® franchisees receive ongoing assistance and recommendations regarding store operations, purchasing, and marketing, primarily through the Operations Manual, electronic media, and telephone consultations. Brew Culture Franchise, LLC issues and modifies Brand Standards, which franchisees must implement. Franchisees also have access to the Brand Fund for advertising and marketing programs. Store operations are periodically inspected and monitored. Brew Culture Franchise, LLC may require managers to attend refresher training courses (up to 5 days total per year) and allows a designated representative to attend an annual franchisee meeting. Additional supplemental training courses are available upon request and at the franchisee's expense.
Franchise Requirements
Ideal Candidate Profile
Brew Culture Franchise, LLC seeks qualified franchisees who are committed to multi-unit development. The franchisor does not offer single-unit franchises, requiring franchisees to commit to developing at least two 7 BREW® Stores within a defined territory and according to a predetermined schedule. Franchisees must designate a Managing Owner who possesses sufficient authority to make business decisions for the franchise and the store. This indicates a preference for business-minded individuals capable of overseeing multiple operations.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
limited
Territory Size Requirements
Each 7 BREW® Store's Area of Protection is defined by a radius from the walls of the store's building, which is either 1.5 or 2 miles, depending on the size of the Metropolitan Statistical Area. The broader development territory is comprised of multiple geographic coordinate points, each with a 1.5-mile or 2-mile radius, within specified cities, counties, or zip codes.
Staffing Notes
Brew Culture Franchise, LLC requires each 7 BREW® Store to have at least two fully-trained on-site managers. The franchisee must designate an individual owner to serve as the Managing Owner, who will be responsible for overall management and business decisions. Store managers are responsible for properly training all other hourly employees to perform their tasks according to Brand Standards. Brew Culture Franchise, LLC emphasizes adequate staffing levels, appearance of personnel, and courteous customer service in its Brand Standards.