Beerhead Bar & Eatery
Bottom line
- Total investment $746K – $1.6M including a $45K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 67/100. SBA loan default rate of 0.0% across 7 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Beerhead Bar & Eatery unit return on the cash you put in?
Unlevered ROIC · per unit
9%
Below typical band (30–60%)
Overview
About
Beerhead Bar & Eatery franchisees operate casual dining establishments serving food and beverages with a focus on craft beer. Day-to-day operations include managing staff, ordering inventory, maintaining POS/accounting systems, marketing locally, ensuring health/liquor compliance, and managing customer service across bar and dining areas.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 9 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Beerhead presents meaningful investment risk due to lack of financial transparency (no Item 19), slow unit growth, significant capital requirements, and a key executive's historical conviction related to fraud and tax evasion.
Score breakdown · what drove the 67 / 100 rating
- 01MINORDirector of Business Relations convicted of federal tax evasion conspiracy (2005) — raises governance and compliance concerns
- 02MEDNo Item 19 financial disclosure (Avg Revenue and Net Income not disclosed) — cannot validate unit economics or ROI claims
- 03MEDSlow unit growth (12.5% YoY on only 9 units) — suggests limited franchisee demand or satisfaction
- 04MEDHigh initial investment range ($746K-$1.56M) with no disclosed average profitability — creates significant downside risk
- 05MINOR6% royalty on gross sales (not net) — incentivizes franchisor over franchisee profitability
- 06MINORBar/restaurant category has historically high failure rates — requires strong execution and local market fit
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
16 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Beerhead Bar & Eatery · FDD (2023) PDF