New York City — Private investment firm Franchise Equity Partners (FEP) has acquired a majority stake in 7 Crew, the second-largest franchise owner of 7 Brew Drive-Thru Coffee. As part of the agreement, FEP will continue to execute 7 Crew’s existing development agreement with 7 Brew, which includes opening more than 200 new stands in addition to the 50 currently operating.
FEP has taken a selective approach to investing in the quick-service restaurant (QSR) sector. After evaluating numerous opportunities, 7 Brew stood out as a differentiated, category-defining brand. 7 Brew is the fastest-growing coffee brand in the U.S., with unit growth from 14 in 2021 to over 460 in 2025, strong same-store sales and superior unit economics. 7 Crew, the system’s second-largest franchisee, combines scale, prime territory and a proven development engine with an experienced leadership team, providing a model for accelerated growth.
“We are thrilled to have FEP join the 7 Brew family,” says John Davidson, CEO of 7 Brew Drive-Thru Coffee. “We truly look forward to the new partnership.”
“From the beginning, it was clear that 7 Brew and 7 Crew align perfectly with our strategy of investing in outstanding operators of category-defining brands,” says David O’Donnell, managing director, head of investments at FEP. “We’re thrilled to partner with Kendra and her team as we help scale 7 Crew’s development to more than 200 new stands over the next 5 years.”
According to Kendra Burris, CEO of 7 Crew, the 7 Brew brand will accelerate development across Texas, Florida, Oklahoma and New Mexico.
Terms of the transaction were not disclosed. Willkie Farr & Gallagher LLP served as legal counsel to 7 Crew. Davis Wright Tremaine LLP served as legal counsel to FEP. Financing for the transaction was provided by investment funds and accounts managed by HPS Investment Partners.
Franchise Equity Partners is a private investment firm specializing in providing capital to franchise businesses and their owners. For more information, visit https://www.fep-us.com/.
7 Brew is a rapidly growing coffee brand revolutionizing how customers experience drive-thru coffee service and think about their morning energy boost. The brand originated in Rogers, Ark.; now, 7 Brew has more than 460 stands across the country. For more information, visit www.7brew.com.
SOURCE: Franchise Equity Partners