Since no room is labeled "family room", I will assume you refer to the Greatroom. Seating for 7 requires two 3-seat sofas and two chairs. I would place one of the sofas on the left wall, and the other floating in the room, facing the fireplace.
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+________ The L shape keeps the traffic pattern open for people to enter the room from the entry or from the kitchen/bkfst room. One chair (to the left of the fireplace) can go on an angle facing into the sofa conversation area and the other chair can go to the right of the fireplace, angled toward the sofa arrangement.
In addition, depending on the size/bulk of your furniture, you will need a coffee table, a square lamp table in the corner formed by the two sofas, a lamp table at the top end of the left sofa (toward the fireplace), and a lamp table or small side table near the other chair next to the fireplace. That second chair can be moved to join the conversation area if needed.
Buying furniture with smaller, narrower arms and cushions will use less space and allow the room to feel more light and airy. Big overstuffed puffy cushions make sofas and chairs look huge and take too much space.

Thanks so much for your input. Should I be looking at apartment sized furniture since I need so much seating?