Franchise Equity Partners acquires major 7 Brew franchisee

Core Insights - Franchise Equity Partners (FEP) has acquired a majority stake in 7 Crew, the second-largest franchisee of the 7 Brew Drive-Thru Coffee system, although transaction terms were not disclosed [1] - FEP will continue to execute 7 Crew's development agreement, which includes opening over 200 new stands across Texas, Florida, Oklahoma, and New Mexico, in addition to the current 50 locations [2] - 7 Brew was recognized as the fastest-growing chain in Technomic's Top 500 for 2024, achieving 163% year-over-year sales growth and 78.3% year-over-year unit growth, ending the year with 321 locations [3] Company Strategy and Vision - The partnership with FEP is seen as a significant opportunity for 7 Crew and the 7 Brew brand, with FEP providing capital and operational expertise to enhance development and maintain a people-first drive-thru experience [3] - FEP's investment strategy focuses on outstanding operators of category-defining brands, aligning with 7 Brew's growth trajectory [4] - Existing investors, Masked Rider Capital and Red Sky Holdings, will retain significant equity stakes, ensuring continuity during the company's growth phase [4] Recent Investments and Growth - The acquisition by FEP follows a growth equity investment from Blackstone Growth aimed at supporting 7 Brew's domestic expansion [5] - Another major franchisee, Motley 7 Brew, also secured additional investment from Orangewood Partners in July 2024, indicating strong investor interest in the brand [5]