Bottom line
- Total investment $894K – $2.2M including a $35K franchise fee, 4.5% ongoing royalty.
- Average unit revenue of $2.0M/year (median $2.1M). Estimated payback in 2.6 years.
- Rated STRONG with a risk score of 24/100. SBA loan default rate of 0.0% across 42 loans (below the industry average).
- System growing at 99999% CAGR over 3 years with 321 total units — strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one 7 BREW unit return on the cash you put in?
Unlevered ROIC · per unit
15%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 7 BREW units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.8M
on $9.2M purchase
Total debt
$7.3M
SBA $4.6M + senior + seller note
Overview
About
7 Brew franchisees operate drive-thru and/or walk-in coffee beverage stands, serving espresso-based drinks, cold brew, and specialty beverages. Day-to-day responsibilities include staffing 2–4 employees per shift, managing inventory, maintaining equipment, executing brand standards, and handling point-of-sale and cash operations across multiple service windows.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 22 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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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.
Score breakdown · what drove the 24 / 100 rating
- 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
41 numbers
One-time purchase · CSV download · Validation questions included
FDD download
7 BREW · FDD (2025) PDF