Franchising Status
Email Address
Phone Number
Unit Location
Email Address
Phone Number
6/10

Franchimp Summary Rating

10 /10
Lower than 0% of peers
6 /10
Lower than 48% of peers

Franchise Summary

Description
7 Leaves Cafes are quick service coffee and tea-based drink Cafes that offer the public premium drinks, snacks and beverages, of distinctive quality under the name 7 Leaves.
Company Background
7 Leaves is a premium coffee and tea based drink Caf?s, with distinctive quality products. It offers the public high-quality drinks, snacks and beverages under the name 7 Leaves(R). The company was founded in 1993 by Dr. Ahmad Al-Hassan who wanted to provide his patients with an alternative to caffeine free diet sodas which are laden with sugar substitutes that can be harmful for people suffering from diabetes. The idea of opening caf?s came about when Dr. Al-Hassan saw his patients struggling to find healthy food options which were affordable and tasted good at the same time.
Franchise Opportunity
Our mission is to create and offer the public premium drinks, snacks and beverages of distinctive quality under the name 7 Leaves(R). As a market leader in our industry we are committed to providing outstanding customer service by ensuring that all our customers receive excellent products, delivered in a timely manner. We have built an extensive network of retail outlets across New Zealand which gives us access to over 65% of New Zealands population. We also operate multiple production facilities throughout New Zealand including Auckland, Wellington, Christchurch & Dunedin allowing us quick response times and delivery anywhere within NZ. 7 Leaves(R) Caf?s are located across major cities throughout New Zealand with plans for further expansion into regional areas where demand exists. These caf?s provide you with a great environment whether you're on your own or meeting friends after work or school as well as being able to enjoy food from some of your favorite fast food chains such as McDonalds(R), Burger King(R), KFC(R), Pizza Hut(R)
Corporate Structure
7 Leaves Franchise, LLC is a California limited liability company, registered on July 6, 2017 with its principal business address at 14361 Euclid St. Suite 3B, Garden Grove, CA 92843. We have never offered franchises in any other line of business.
Investment and Franchisee Fees
7 Leaves offers both individual franchise locations as well as an area development agreement. The total investment necessary to begin operation of an individual 7 Leaves Cafe franchise ranges from $244,000 to $490,000 including the initial franchise fee of $35,000 that must be paid to the franchisor, as well as additional potential fees to the franchisor including a $10,000 payment for your grand opening advertising campaign and a $3,000 payment for providing preopening assistance (if required or requested). The total initial investment for the area development agreement is $285,000 including a $250,000 developer fee paid to the franchisor and an initial franchise fee of $35,000 for the first 7 Leaves Cafe to be developed in the territory.

Earnings Transparency

1 /10
This Franchise discloses much less information about the financial performance of their franchisees compared to other franchises in the same industry

Why do some franchises disclose more than others?
There are many reasons why a brand may choose to not include item 19 on their FDD: they could be a newer franchise, they may be in a unique industry that is not super profitable or well-known yet

Franchisee Attrition

10 /10
This franchise's rate of attrition in 2023 of 0.00% was Lower than the 3% in the Retail Food industry. Generally speaking, a higher rate of attrition represents a less stable franchise system and a lower rate of attrition indicates a more successful system
What's Included in franchise attrition?
We define the franchisee attrition rate as the sum of terminations, re-acquisitions by franchisor, non-renewals, and ceased operations, divided by the number of outlest at the start of the year. It is a strong indicator of the strength of the underlying operating model

Franchise Disclosure Documents

FDD Effective Date

7 Leaves Cafe Franchise System Development in 2020

FAQ

How much investment do I need to start my own 7 Leaves Cafe business?
We aren't sure how much money you will need to start a 7 Leaves Cafe franchise. However, we can tell you that franchisees also operating in the Food & Beverage industry typically require $231,799 to $631,852 investment to start their franchise
What are the initial franchise fees for 7 Leaves Cafe?
We don’t know exactly how much the franchise fees are for 7 Leaves Cafe, but we can tell you that other franchises in the Food & Beverage sector typically need to pay between $33,957 and $69,104 to the franchisor
How much money can I make with a 7 Leaves Cafe franchise? What are the average revenues for a typical 7 Leaves Cafe business?
We haven’t done the math on how much revenue a typical 7 Leaves Cafe brings in each year. We estimate that other franchisees in the Food & Beverage industry generate $0 revenue, so we would expect 7 Leaves Cafe to generate a similar amount
How long do I need to commit to running a 7 Leaves Cafe unit? What is my contractual commitment?
The standard length for an initial franchise contract is 10 years. Renewals are also generally 10 years

Accessibility

6 /10
The Franchisor's investment costs ranges from $62,500 to $244,405 which is Much Lower than the $433,675 to $989,553 average in the Retail Food industry
What determines the investment cost?
Item 7 of the Franchise Disclosure Document lays out the full list of initial investment costs, including the fee payable to the franchisor, security deposits, equipment, professional fees etc

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