Barrel HouseFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Barrel House franchise requires a total initial investment of $680K – $1.7M, including a $40K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $1.7M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $680K – $1.7M
- 39th pct Service Resta…
- Avg gross sales
- $1.7M
- 18th pct Service Resta…
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 6
- 15th pct Service Resta…
- SBA default
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $680K – $1.7M including a $40K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.7M/year.
- Verdict A (Top Quintile) with a risk score of 39/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Barrel House Enterprises LLC
- Predecessor
- and affiliate
- Prior franchisor entity
- Incorporated in
- IA
- HQ
- 4401 W Locust St., Davenport, Iowa 52804
- Auditor
- LB CARLSON, LLP
- Audited financials
- Franchisor revenue
- $122K
- vs $122K prior year
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Affiliated brands
- The Barrel House
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Barrel House franchisees operate what appears to be a craft beverage or spirits-focused establishment (likely bar, distillery, or barrel-aged product retailer). Daily operations likely include inventory management, customer service, compliance with alcohol regulations, and event hosting, though specific operational details are unavailable without disclosure documents.
- CEO
- Jimmy Holt
- Headquarters
- IA
- Founded
- 2020
- FDD year
- 2025
- States available
- 2
FDD Item 7 · 2025 filing · 17 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $40K | $40K | |
| Rent (3 months) and Security Deposit | $15K | $35K | |
| Utility & Deposits | $5K | $10K | |
| Licenses & Permitsnot refundable | $5K | $35K | |
| Design & Architectural Fees | $25K | $50K | |
| Construction Management Feenot refundable | $10K | $10K | |
| Leasehold Improvements | $250K | $800K | |
| Signage | $10K | $35K | |
| Furniture & Fixtures | $50K | $100K | |
| POS/Back Office System | $10K | $15K | |
| Equipment | $150K | $350K | |
| Professional Fees | $5K | $15K | |
| Initial Inventory | $30K | $50K | |
| Insurance (Quarterly) | $4K | $7K | |
| Training Expenses | $5K | $20K | |
| Grand Opening Advertising | $7K | $15K | |
| Additional Funds - 3 Months | $60K | $75K | |
| Total initial investment | $680K | $1.7M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$207K
12.0% margin
Unlevered ROIC
17%
EBITDA / total invested capital
Payback
6.0 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $680K – $1.7M
- Better than avg vs category
- Liquid capital req'd
- $60K – $75K
- Near category avg vs category
- Franchise fee
- $35K – $40K
- Better than avg vs category
- Royalty
- 5.0%
- Gross Sales · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $250 |
| Transfer fee | $20K |
| Renewal fee | $8K |
| Total fee load | 6.0% of rev |
A 6.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $1.7M
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- gross_sales
- Sample size
- 6 units
- vs category median 13 · small
- Range (low → high)
- $910K→$2.5M
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 0 / 5
- vs category median 4 / 5 · below
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How Barrel House Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 6
- Opened
- 0
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 5
- Corporate units in the system
- % franchised
- 17%
- vs corporate-owned
- Net growth (yr3)
- +0.0%
- Net unit change last year
- 3-yr CAGR
- +0.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 1
- Franchisor's next-year forecast
- Continuity rate
- 100.0%
- Units that stayed open
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 2 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
2
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Early-stage or stagnant franchise system with minimal transparency on unit economics and franchisor financial health, requiring extensive validation before committing $680K+ investment.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $40,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · LB CARLSON, LLP⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 39 / 100 rating
- 01MINORNo Item 19 disclosure — average revenue and net income not provided, making ROI analysis impossible
- 02MINOROnly 6 operating units suggests either very early stage or stagnant growth with unclear trajectory
- 03MEDHigh initial investment range ($680K-$1.66M) with no disclosed average profitability creates significant downside risk
- 04HIGHGoing Concern flag indicates potential financial instability at franchisor level
- 05MED5% royalty plus undisclosed operating costs could compress margins significantly
- 06HIGHNo litigation disclosure required doesn't mean none exists — only applies to material disputes
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Radius |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Iowa |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 16 hrs
- On-the-job training
- 120 hrs
- Training location
- On-site and corporate
- Franchisor financing
- Offered
- Item 10
- POS system
- Toast
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toast
Item 20 · call current owners
Franchisee Contacts
4 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Barrel House · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Barrel House franchise?
The total investment to open a Barrel House franchise ranges from $680K – $1.7M, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Barrel House franchise owners earn?
According to Item 19 of the Barrel House FDD, the average gross sales per unit is $1.7M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Barrel House's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Barrel House (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Barrel House franchise locations are there?
As of their most recent FDD filing, Barrel House has 6 total units in the United States, including 0 franchised units and 5 company-owned units.
Is Barrel House a good franchise to buy?
FranchiseVerdict rates Barrel House as a A-grade franchise with a risk score of 39 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.