2026 FDD Issued May 11, 2026 Minnesota Commerce (CARDS) Checked Nov 3, 2026
7 Brew Franchise Cost (2026)
A 7 Brew franchise costs an estimated $940,500 – $2,283,500 to open, according to Item 7 of the 2026 Franchise Disclosure Document (FDD). That total includes the $35,000 initial franchise fee (Item 5) and covers this format: New traditional Store with minimum ten-Store development commitment. Item 6 lists royalty: 4.5% – 7% of weekly Store Gross Sales, subject to the conditions below.
- Total investment
- $941K – $2.28MItem 7 source and qualifications
- Franchise fee
- $35KItem 5 source and terms
- Royalty
- 4.5% – 7% of weekly Store Gross SalesItem 6 conditions and fee bases apply
- Brand fund
- 2% of weekly Store Gross SalesItem 6 conditions and fee bases apply
- Units (2025)
- 602Item 20 source and scope
- Franchise exit rate
- 2.2% / yrCalculated 3-year average; definition and source
What stands out about 7 Brew
The first Store's Item 7 budget carries a development fee for a wider Store commitment. That payment is much larger than the first Store's franchise fee because the agreement requires several additional Stores. Later Stores have their own initial franchise fees when they open, and the development payments for those Stores do not reduce those later fees. The Item 7 range therefore describes opening a traditional Store while committing to a broader development schedule, not the total cost of opening every Store promised in that schedule.
The royalty changes with each week's sales rather than using one rate for the whole year. A Store in a higher weekly tier pays a different percentage from a Store in a lower tier, even if their annual sales totals are similar. Brand Fund and technology contributions are separate percentages. Item 6 also permits affiliate land rent and pass-through vendor charges under particular arrangements, so a simple annual percentage would omit costs or apply charges that do not belong to every owner.
Item 19's franchised sales group covers Stores that operated throughout the fiscal year and excludes the many Stores that opened during that year. The FDD also explains that a few measured Stores changed franchise or company ownership during the period, despite being grouped by the ownership basis specified in its footnote. Item 20 records rapid openings and a small number of reacquisitions, but its end-of-year outlet count is broader than the full-year sales sample. The two figures answer different questions.
What are the initial franchise fees and financial requirements for 7 Brew?
Item 5 lists an initial franchise fee of $35,000 for 7 Brew. Check the cited Item 5 for payment timing, discounts and format-specific terms.
The first Store has a $35,000 initial franchise fee, included in the development fee. Each subsequent Store developed under the Development Rights Rider has a $25,000 initial franchise fee due after opening. New franchisees must commit to at least ten traditional Stores. The minimum $125,000 development fee is the first Store's $35,000 fee plus $10,000 for each of the other nine committed Stores; those $10,000 payments are not credits against the later $25,000 fees. Item 5 also describes optional affiliate building and equipment purchases and a conditional affiliate Ground Lease.
Source: 7 Brew 2026 FDD, Item 5, PDF p. 15.
This record lists no minimum net worth or liquid-capital requirement for 7 Brew, because no sourced figure has been recorded. Ask the franchisor for its current financial qualifications in writing.
How much does it cost to open a 7 Brew franchise? (Item 7)
Source: 7 Brew 2026 FDD, Item 7, PDF p. 23.
Item 7 of 7 Brew’s 2026 Franchise Disclosure Document estimates the total cost to open one new traditional store with minimum ten-store development commitment at $940,500 – $2,283,500. This total includes the initial franchise fee.
| Expense Category | Low ($) | High ($) |
|---|---|---|
| Development Fee and First Initial Franchise Fee | $125,000 | $125,000 |
| Rent and Security Deposit | $5,000 | $20,000 |
| Building / Build-Out Costs | $305,000 | $650,000 |
| Site Development Costs | $200,000 | $800,000 |
| Architectural and Engineering Fees | $10,000 | $60,000 |
| Store Equipment, Fixtures, and Furniture | $185,000 | $250,000 |
| Signs | $10,000 | $40,000 |
| Point-of-Sale System | $25,000 | $30,000 |
| Opening Inventory, Supplies, and Uniforms | $15,000 | $50,000 |
| Business and Operating Permits | $2,500 | $25,000 |
| Initial Training Travel and Living Expenses | $10,000 | $75,000 |
| Utilities | $500 | $2,500 |
| Insurance | $2,500 | $6,000 |
| Marketing Start-Up Expense | $20,000 | $75,000 |
| Additional Funds, 3 Months | $25,000 | $75,000 |
| Total | $940,500 | $2,283,500 |
For comparison, the median high-end investment among 25 restaurants & food records without a source-review hold is $1,297,100.
The table spans PDF pages 23-25 and assumes a new traditional Store. Its first line includes a $125,000 minimum development fee tied to a ten-Store commitment, not merely the first Store's $35,000 franchise fee. Affiliate-owned Store asset purchases are negotiated separately; the FDD does not give a fixed alternative Item 7 total for them.
What ongoing royalties and fees does 7 Brew charge? (Item 6)
Source: 7 Brew 2026 FDD, Item 6, PDF p. 16.
Item 6 of 7 Brew’s 2026 FDD lists the charges below. Recurring charges and charges triggered by a transfer, renewal or other event have different conditions. Read each fee’s basis and notes before comparing rates.
How to read an Item 6 fee table.
| Fee Type | Amount / Rate | Payment Frequency | Notes & Source |
|---|---|---|---|
| Royalty | 4.5% – 7% of weekly Store Gross Sales | Every period | The FDD prints three weekly tiers: 4.5% below $20,000, 5.5% from $20,000 through $25,000, and 7% above $25,000. Prior concessions for certain multi-unit developers are described in the notes. (Item 6, PDF p. 16) |
| Brand Fund Contributions | 2% of weekly Store Gross Sales | Every period | Current rate and contractual maximum are both 2%. (Item 6, PDF p. 17) |
| Technology Fee | 0.25% of weekly Store Gross Sales | Every period | Current rate and contractual maximum are both 0.25%; third-party technology reimbursements are separate. (Item 6, PDF p. 17) |
| Successor Franchise Fee | $10,000 | When it applies | (Item 6, PDF p. 18) |
| Transfer of Franchise Rights or Controlling Ownership Interest | $10,000 | When it applies | (Item 6, PDF p. 18) |
| Transfer of Non-Controlling Ownership Interest | $1,000 | When it applies | (Item 6, PDF p. 18) |
| Annual Meeting or Convention | Varies | When it applies | If a meeting is held and the owner or approved representative attends, the attendance fee may be charged up to $1,000 per person, excluding travel costs. (Item 6, PDF p. 18) |
| Product and Service Purchases | Varies | When it applies | Actual costs for required products and services from the franchisor, affiliates, or designated suppliers vary with purchases. (Item 6, PDF p. 18) |
| Real Estate Rent | Varies | When it applies | Conditional on leasing the Store land from an affiliate; Item 6 estimates $5,000 to $20,000 monthly, with actual terms in the Ground Lease. (Item 6, PDF p. 18) |
| Payments for Amounts Due to Third-Party Vendors | Varies | When it applies | Pass-through vendor costs under single-payer arrangements. An administrative charge of 10% of each collected payment is permitted but not currently planned. (Item 6, PDF p. 19) |
| Supplemental Training at Your Store | Varies | When it applies | Requested local training: up to $1,500 per trainer per day plus travel and living expenses. (Item 6, PDF p. 19) |
| Testing and Evaluation Costs | Varies | When it applies | Actual costs to test a proposed product, service, or supplier. (Item 6, PDF p. 19) |
| Relocation | Varies | When it applies | $5,000 plus the franchisor's reasonable costs if an approved relocation occurs. (Item 6, PDF p. 19) |
| Audit | Varies | When it applies | Inspection or audit costs if sales are not reported or are understated by at least 2%. (Item 6, PDF p. 20) |
| Interest | Varies | When it applies | Past-due amounts bear the lesser of 1.5% per month or the highest permitted commercial contract interest rate. (Item 6, PDF p. 20) |
| Administrative Fee | $100 | When it applies | Each late or dishonored payment. (Item 6, PDF p. 20) |
| Costs and Attorneys' Fees | Varies | When it applies | Conditional reimbursement for franchise agreement noncompliance. (Item 6, PDF p. 20) |
| Indemnification | Varies | When it applies | Covered third-party claims and losses arising from construction, operation, legal noncompliance, security incidents, or agreement breach. (Item 6, PDF p. 20) |
| Management Fee | Varies | When it applies | Up to 10% of Gross Sales plus out-of-pocket expenses if the franchisor assumes Store management. (Item 6, PDF p. 21) |
| Reimbursement for Third-Party Service Providers | Varies | When it applies | Reimbursement of third-party quality, food-safety, guest-satisfaction, and mystery-shop program costs. (Item 6, PDF p. 21) |
| Reimbursement for Customer Complaints | Varies | When it applies | Actual costs if the franchisor resolves a complaint after the franchisee fails to do so. (Item 6, PDF p. 21) |
| Tax Reimbursement | Varies | When it applies | Applicable state taxes imposed on Store operation or payments to the franchisor, excluding the franchisor's income taxes. (Item 6, PDF p. 21) |
| Insurance Reimbursement | Varies | When it applies | Actual cost if the franchisor obtains required Store insurance after franchisee failure. (Item 6, PDF p. 21) |
| Reimbursement of Repairs | Varies | When it applies | Under an affiliate Ground Lease, reimbursement when the landlord performs repairs the franchisee should have made. (Item 6, PDF p. 21) |
| Deficiency Correction Fee | Varies | When it applies | Actual franchisor cost to correct a Store deficiency after franchisee failure. (Item 6, PDF p. 21) |
| De-Identification Fee | Varies | When it applies | Actual franchisor cost to de-identify a Store after franchisee failure. (Item 6, PDF p. 21) |
Explore annual fees and payback assumptions
This fee schedule cannot be reduced to the calculator’s simple sales-based formula. Enter your own assumptions and check them against the Item 6 terms.
7 Brew startup investment and modeled fees over 10 years
The royalty depends on each Store's weekly Gross Sales tier, while affiliate rent and pass-through vendor charges vary by arrangement. An annual sales amount cannot determine the weekly rate mix or all ongoing charges. See the fee amounts and definitions in Item 6 above. Open the calculator with your own assumptions.
Item 20: 7 Brew franchised outlet history
Source: 7 Brew 2026 FDD, Item 20, PDF p. 79.
Item 20 Table 3 reports 578 franchised outlets at the end of 2025. The company-owned table reports a further 24 outlets. Our calculated average annual franchised exit rate is 2.2% across the 3 reported years, using the definition below.
| Year | Franchised at Start | Opened | Reported Exits | At End | Franchise Exit Rate (%) |
|---|---|---|---|---|---|
| 2023 | 24 | 138 | 1 | 161 | 4.2% |
| 2024 | 161 | 139 | 3 | 297 | 1.9% |
| 2025 | 297 | 283 | 2 | 578 | 0.7% |
Franchised units went from 24 to 578 over 3 years (+554).
Reported exits include terminations, non-renewals, franchisor reacquisitions and other cessations. A reacquired outlet may continue operating. How we calculate the exit rate. How to read the Item 20 outlet tables. Compare 7 Brew’s exit rate with other brands.
28 units changed owners in 2025.
Table No. 3 all-state totals are on PDF page 79, Table No. 2 transfers on page 73, and Table No. 4 company-owned totals on page 80. The FDD says these totals exclude two non-traditional Stores opened in 2025 without a drive-thru window. Item 19's full-year sales sample is narrower than the Item 20 outlet count.
How much do 7 Brew franchise owners make? (Item 19)
Source: 7 Brew 2026 FDD, Item 19, PDF p. 69.
Item 19 of the 2026 FDD reports average Annual Total Sales, Franchised Stores of $2,646,063 (December 30, 2024 to December 28, 2025, 297 franchised Stores open and operating for the entire Fiscal Year 2025). 7 Brew’s Item 19 reports sales but no profit, costs or owner pay. Rent, payroll, supplies, loan payments and Item 6 fees such as the royalty (4.5% – 7% of weekly Store Gross Sales) come out of sales before an owner is paid, so these figures cannot show what an owner earns.
See every 7 Brew Item 19 figure, with its period and sample.
Payback calculator (enter your own assumptions) Check any inputs against this record’s Item 7 startup costs and Item 6 fee rules.
How to interpret 7 Brew’s Item 19 figures and sample limits.
How long is the 7 Brew franchise agreement term?
Source: 7 Brew 2026 FDD, Item 17, PDF p. 59.
The standard 7 Brew franchise agreement runs 15 years, with renewal terms of 5 years.
Item 17 says the initial term runs from signing and expires fifteen years after Store opening. A compliant franchisee may potentially acquire two successive five-year successor franchises; the Development Rights Rider has no renewal.
How long does it take to open a 7 Brew franchise? (Item 11)
Source: 7 Brew 2026 FDD, Item 11, PDF p. 40.
Item 11 of the 2026 FDD states the time from signing the Franchise Agreement to opening: approximately 200 to 540 days.
Opening depends on site approvals, licenses, equipment delivery, training, and written Store approval.
Franchises with a similar investment range
These published records are selected by proximity to 7 Brew’s $940,500 low-end Item 7 investment, starting with Restaurants & Food. Formats, fees and source qualifications differ; the figures are not interchangeable budgets:
- Five Guys $928K – $1.38M Source review pending Provisional publication Restaurants & Food
- Tim Hortons $988K – $3.31M Restaurants & Food
- Crumbl $849K – $1.47M Restaurants & Food
- Pizza Hut $846K – $2.13M Restaurants & Food
- Blaze Pizza $757K – $1.3M Restaurants & Food
- Paris Baguette $728K – $1.86M Restaurants & Food
Compare other restaurants & food franchises
Sources
Brew Culture Franchise, LLC Franchise Disclosure Document, issued May 11, 2026, as filed with the Minnesota Commerce (CARDS). Read the source FDD PDF. How to get this FDD yourself.
- Item 5: cited PDF p. 15
- Item 6: cited PDF p. 16
- Item 7: cited PDF p. 23
- Item 19: cited PDF p. 69
- Item 20: cited PDF p. 79
- Agreement term (Item 17): cited PDF p. 59
Page references for 7 Brew use the PDF viewer's digital page count, not printed page headers. Some viewers download the document instead of opening the referenced page.
If the state document viewer does not open, use Minnesota Commerce's public filing instructions to look up the filing by franchisor name and document date.
Document & verification changelog
- November 3, 2026: Source check completed against the recorded FDD.
- November 3, 2026: Initial cost profile published from the 2026 Franchise Disclosure Document (issued May 11, 2026).