7 Brew Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
7 Brew is a drive-thru coffee franchise serving espresso drinks, energy drinks, and specialty beverages from compact, multi-lane stands. Franchisees run fast, drive-thru-focused kiosks built on speed and repeat traffic.
FranchiseVerdict summary · 2026
A 7 BREW franchise requires a total initial investment of $894K – $2.2M, including a $35K franchise fee and an ongoing 4.5% royalty[2]. Per the 2025 FDD, average unit revenue was $2.0M[2]. SBA 7(a) loans show a 0.0% charge-off rate across 22 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $894K – $2.2M
- 92nd pct Service Resta…
- Avg gross sales
- $2.0M
- 31st pct Service Resta…
- Royalty
- 4.5%
- 10th pct Service Resta…
- Units
- 321
- 87th pct Service Resta…
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $894K – $2.2M including a $35K franchise fee, 4.5% ongoing royalty.
- RETURNSAverage unit revenue of $2.0M/year (median $1.9M). Note: this is gross profit, not take-home income.
- RISKVerdict A (Strongest tier), verdict score 84/100 (higher is better). SBA loan charge-off rate of 0.0% across 22 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHSystem growing at 1137.5% CAGR over 3 years with 321 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Brew Culture Franchise, LLC
- Parent company
- Brew Culture, LLC
- Ultimate parent
- Blondie Holdings, LLC
- CEO title
- Chief Operating Officer and Director of Franchising
- Andrew Ritger
- Incorporated in
- Wyoming
- HQ
- 2710 S. 48th Street, Springdale, Arkansas 72762
- Auditor
- CohnReznick LLP
- Audited financials
- Franchisor revenue
- $43.5M
- vs $15.4M prior year
Overview
About
- CEO
- Andrew Ritger
- Headquarters
- Arkansas
- Founded
- 2021
- FDD year
- 2025
- States available
- 31
Can you afford it, and what does the money buy?
Entry cost runs 133% above the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown15 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Development Fee and First Initial Franchise Fee (minimum 5-Store commitment)not refundable | $75K | $75K | |
| Rent and Security Deposit | $5K | $20K | |
| Building / Build-Out Costsnot refundable | $319K | $600K | |
| Site Development Costsnot refundable | $200K | $800K | |
| Architectural and Engineering Feesnot refundable | $10K | $60K | |
| Store Equipment, Fixtures, and Furniturenot refundable | $185K | $250K | |
| Signsnot refundable | $10K | $40K | |
| Point-of-Sale Systemnot refundable | $15K | $25K | |
| Opening Inventory, Supplies, and Uniformsnot refundable | $15K | $50K | |
| Business and Operating Permitsnot refundable | $3K | $25K | |
| Initial Training Travel & Living Expensesnot refundable | $10K | $75K | |
| Utilities | $500 | $3K | |
| Insurancenot refundable | $3K | $6K | |
| Marketing Start-Up Expensenot refundable | $20K | $75K | |
| Additional Funds - 3 Monthsnot refundable | $25K | $75K | |
| Total initial investment | $894K | $2.2M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $894K – $2.2M
- Bottom third — review vs category
- Liquid capital req'd
- $25K – $75K
- Middle of category vs category
- Franchise fee
- $35K – $35K
- Middle of category vs category
- Royalty
- 4.5%
- tiered · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 6.8%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.5% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $0 |
| Transfer fee | $10K |
| Renewal fee | $10K |
| Total fee load | 6.8% of rev |
A 6.8% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
What do units actually make?
Average unit sales run 65% above the quick-service restaurants norm.
Source: FDD 2025 · Item 19
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$308K
15.5% margin
Unlevered ROIC
19%
EBITDA / total invested capital
Payback
5.1 yrs
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one 7 BREW unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
19%
Below the 30–60% attractive-franchise band
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 7 BREW units return on equity?
Equity IRR · 5-yr
31.9%
4.00× MOIC
Year-1 DSCR
2.52×
EBITDA ÷ debt service
Equity required
$6.8M
on $16.9M purchase
Total debt
$10.1M
SBA $5.0M + senior + seller note
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
- Avg gross sales
- $2.0M
- Per unit, per year
- Median gross sales
- $1.9M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales and cost percentages
- Sample size
- 162
- vs category median 20 · large
- Range (low → high)
- $889K→$4.0M
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 9 / 10
- vs category median 4 / 10 · above
Compared against 782 Quick-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $2.0M/year in gross sales. Revenue-to-investment ratio: 1.3x.
Fee burden
Total ongoing fee load of 6.8% (near the Quick-Service Restaurants average).
Disclosure
Transparency score 9/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 1137.5% CAGR over 3 years across 321 units — operators are staying and new ones are joining.
Multi-unit rate
Only 14% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants averages
How 7 Brew Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 321
- Opened
- 139
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 24
- Corporate units in the system
- % franchised
- 93%
- vs corporate-owned
- Multi-unit owners
- 14.3%
3-year detail · Item 20
- Opened (3yr)
- 136
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 14
- Reacquired (3yr)
- 0
- Franchisor bought back
- Transfer rate
- 4.4%
- Owners selling to other franchisees
- Continuity rate
- 99.0%
- Units that stayed open
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 9 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 22
- Loan volume
- $23.5M
- Median loan
- $1.4M
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 7
- Defaults
- 0
- Typical loan rate
- 8.1%
- avg rate to borrowers
- Franchised industry avg
- 10.8%
- brand beats franchise avg ↓
- Jobs supported
- 734
- 4.1 per loan
- Lender concentration
- 50%
- top lender's share
Borrower mix: 94% went to startups / new businesses, 6% to established operators
Franchise vs independent — in limited-service restaurants, franchised businesses charge off at 10.8% vs 10.0% for independents — franchising is associated with 8% higher SBA default risk in this category.
Top lenders financing 7 Brew franchisees
Showing 3 of 7 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into 7 Brew's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 6 lenders with concentration factor
- Per-state charge-off rates across 8 states
- Startup risk premium and job creation velocity
- 6-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
With a 0.0% charge-off rate across 22 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
7 Brew shows strong unit growth and acceptable profitability claims, but lack of financial disclosure transparency and rapid expansion raise questions about sustainability and franchisee experience variability.
Litigation (Item 3)
No litigation is required to be disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · CohnReznick LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 84 / 100 verdict
- 01MEDNo Item 19 (Financial Performance Representations) disclosed — cannot independently verify claimed $598K average net income
- 02MINORHigh unit growth rate (84.5% YoY) raises sustainability concerns — rapid expansion often precedes market saturation or quality control issues
- 03MEDWide investment range ($894K–$2.18M) suggests inconsistent build-out costs or undisclosed variables affecting ROI predictability
- 04MINORRoyalty structure tops out at 7% of weekly gross sales — compounded with rent and labor, squeezes net margins on ~$2M revenue
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.8% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 15 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 2 mi |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 3 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Springdale, Arkansas (within 10 miles of franchisor's principal business address) |
| Jury trial waiver | Yes |
| Governing law | Arkansas |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 4 hrs
- On-the-job training
- 138 hrs
- Training location
- Training Center in Springdale, Arkansas; affiliate-owned training store in Fayetteville, Arkansas
- Ongoing training
- Required
- Site selection
- franchisee (franchisor accepts sites)
- Franchisor financing
- Not offered
- Item 10
- POS system
- iPad-based POS system
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: iPad-based POS system
Item 20 · call current owners
Franchisee Contacts
18 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
7 BREW · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a 7 BREW franchise?
The total investment to open a 7 BREW franchise ranges from $894K – $2.2M, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do 7 BREW franchise owners earn?
According to Item 19 of the 7 BREW FDD, the average gross sales per unit is $2.0M. The median is $1.9M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the 7 BREW FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the 7 BREW FDD and qualifies whose outlets they describe.
What is 7 BREW's franchise failure rate?
Based on SBA 7(a) loan data, 7 BREW has a charge-off rate of 0.0% across 22 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many 7 BREW franchise locations are there?
As of their most recent FDD filing, 7 BREW has 321 total units in the United States, including 297 franchised units and 24 company-owned units. 139 new units were opened in the latest reporting year.
Is 7 BREW a good franchise to buy?
FranchiseVerdict rates 7 BREW as a A-grade franchise with a verdict score of 84 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
If you represent 7 BREW, you can request corrections or provide updated information.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.