Franchise Equity Partners Expands with 7 Brew Coffee Investment
Franchise Equity Partners Makes Significant Investment in 7 Brew
Franchise Equity Partners (FEP) has recently made a substantial investment in 7 Crew, the second-largest franchisee of 7 Brew Drive-Thru Coffee. This investment marks an important milestone for both companies as they embark on a partnership designed to enhance the customer experience in the fast-growing coffee sector.
Development Deal Highlights
As a result of the new partnership, FEP is set to continue executing an ambitious development agreement that will see the opening of more than 200 new 7 Brew stands. This is in addition to the existing 50 locations already operating successfully. FEP’s strategy revolves around identifying unique opportunities within the quick-service restaurant sector, and 7 Brew has emerged as a standout brand in this competitive space.
7 Brew: A Growing Success Story
Known for its rapid growth, 7 Brew is recognized as the fastest-growing coffee chain in the United States. Its journey began with just 14 units in 2021, skyrocketing to over 460 locations in a few short years. The brand has witnessed remarkable same-store sales increases and maintains strong unit economics, which contribute to its appeal to investors.
The Vision Behind the Partnership
John Davidson, the CEO of 7 Brew, expressed enthusiasm about FEP joining the 7 Brew family, stating that the unique partnership opens a new chapter for the brand. The alignment between 7 Brew and FEP reflects shared values and a commitment to delivering exceptional service to customers while nurturing a culture of kindness.
Support and Resources from FEP
David O'Donnell, Managing Director and Head of Investments at FEP, highlighted the alignment of both companies' visions. The partnership aims to not only propel the development of new stands but also enhance operational efficiency across the board. With years of expertise and a substantial financial backing, FEP is well-positioned to support 7 Crew in achieving its ambitious growth targets.
A Commitment to Culture and Community
Kendra Burris, CEO of 7 Crew, emphasized that the partnership with FEP is not solely about expansion; it's also about cultivating a positive environment for employees and customers alike. With a focus on kindness and community engagement, 7 Brew intends to create an inviting atmosphere at its locations.
Continuing Investor Involvement
Existing investors, such as Masked Rider Capital and Red Sky Holdings, will maintain significant equity stakes in 7 Crew during this growth phase. Their continued involvement ensures a steady transition as the business accelerates its expansion efforts.
Insights on the Transaction
While specific financial terms of the transaction were not disclosed, it is evident that both parties are committed to fostering a partnership that prioritizes growth and sustainability. Legal firms Willkie Farr & Gallagher LLP and Davis Wright Tremaine LLP provided counsel during this major deal.
About Franchise Equity Partners
Franchise Equity Partners specializes in providing capital to franchise-owned businesses, fostering growth, and facilitating ownership simplification. With over $1 billion in committed capital, FEP is dedicated to building long-term partnerships that support franchise owners in their journey.
About 7 Brew
7 Brew is challenging the traditional drive-thru coffee narrative by offering a unique customer experience that is both fast and friendly. The brand serves a wide array of products including espresso-based drinks, chilled beverages, and sodas, all crafted to energize customers while promoting a culture of kindness. Following its initial establishment in Rogers, Arkansas, the brand has expanded significantly, boasting more than 460 stands nationwide now.
Frequently Asked Questions
What is the significance of FEP's investment in 7 Brew?
FEP's investment signifies a commitment to accelerating the growth of 7 Brew, with plans to open over 200 new stands, enhancing its drive-thru coffee service.
How many locations does 7 Brew currently operate?
7 Brew currently operates over 460 locations across the United States and continues to experience rapid growth.
What are the core values of 7 Brew?
7 Brew focuses on delivering exceptional customer service with a culture built around kindness and community engagement.
Which firms provided legal counsel for the transaction?
Willkie Farr & Gallagher LLP served as legal counsel to 7 Crew, while Davis Wright Tremaine LLP represented FEP during the investment deal.
How does FEP support franchise businesses?
FEP provides capital and operational support to franchise businesses, enabling long-term growth and sustainable development within the industry.
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