Private investment company Franchise Equity Partners (FEP) has acquired a majority stake in 7 Crew, the second-largest franchise owner of beverage chain 7 Brew Drive-Thru Coffee.
Financial details of the transaction remain undisclosed.
The acquisition is set to bolster 7 Crew's growth as part of its agreement with 7 Brew. This includes plans to launch more than 200 new stands in addition to the existing 50.
FEP's investment in 7 Crew is part of its selective strategy within the quick-service restaurant (QSR) sector, identifying 7 Brew as a “category-defining” brand.
The coffee chain has seen expansion, growing from 14 units in 2021 to more than 460 by 2025.
According to FEP, 7 Crew offers a combination of scale, prime territory, and a development model, making it a suitable partner for the private equity company to support and accelerate.
FEP head of investments and managing director David O'Donnell said: "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.
"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 five years."
The partnership is aligned with FEP's aim of providing capital and operational support to franchise operators.
7 Crew CEO Kendra Burris said: "This partnership with Franchise Equity Partners marks an exciting new chapter for 7 Crew and the 7 Brew brand.
"FEP brings not only capital but also deep operational expertise, a long-term vision, and an alignment with our commitment to our employees and customers. Together, we will accelerate development across Texas, Florida, Oklahoma, and New Mexico, expanding our footprint while strengthening our ability to deliver the people-first drive-thru experience that defines 7 Brew and our culture to cultivate kindness."
Current investors Masked Rider Capital and Red Sky Holdings maintain “significant” equity stakes.
Legal counsel for 7 Crew was provided by Willkie Farr & Gallagher, while Davis Wright Tremaine advised FEP.
The transaction's financing came from investment funds and accounts managed by HPS Investment Partners.
