BrewDog Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
BrewDog is a craft beer franchise operating bars that serve its house craft beers alongside pub food. Franchisees run the bars, managing beer service, kitchen, and staffing.
FranchiseVerdict summary · 2026
A BrewDog franchise requires a total initial investment of $3.4M – $5.7M, including a $50K franchise fee and an ongoing 5.0% royalty[2]. Per the 2024 FDD, average unit revenue was $2.9M[2]. FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $3.4M – $5.7M
- 40th pct Service Resta…
- Avg gross sales
- $2.9M
- Company-owned only13th pct Service Resta…
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 8
- 11th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Full-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $3.4M – $5.7M including a $50K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $2.9M/year (median $2.7M) (company-owned outlets only - not franchisee performance), with an estimated 3% cash-on-cash return (based on EBITDAR).
- RISKVerdict D (Below average), verdict score 29/100 (higher is better).
- FLAGAuditor 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
Corporate structure & franchisor financials
- Legal entity
- BrewDog Franchising LLC
- Parent company
- BrewDog USA Inc.
- Ultimate parent
- BrewDog PLC
- CEO title
- Chief Executive Officer
- John Graham
- Incorporated in
- OH
- HQ
- 96 Gender Road, Canal Winchester, Ohio 43110
- Auditor
- IndigoSpire CPA Group, LLC
- Audited financials
- Franchisor revenue
- $0
- vs $0 prior year
- ⚠ Going-concern note
- Disclosed in FDD 2024
- Status as of 2024; may have been resolved in a later filing we don't yet have.
Overview
About
- CEO
- John Graham
- Headquarters
- OH
- Founded
- 2019
- FDD year
- 2024
- States available
- 3
Can you afford it, and what does the money buy?
Entry cost runs 289% above the typical full-service restaurants franchise.
Source: FDD 2024 · Items 5–7
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $50K | $200K |
| Equipment, build-out, other | $3.3M | $5.5M |
| Total initial investment | $3.4M | $5.7M |
Source: BrewDog 2024 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $3.4M – $5.7M
- Top 40% of category vs category
- Liquid capital req'd
- $50K – $200K
- Top 40% of category vs category
- Franchise fee
- $50K – $50K
- Top 40% of category vs category
- Royalty
- 5.0%
- percentage · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
- Payback period
- 36.7 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $2K |
| Training fee | $50K |
| Transfer fee | $25K |
| Renewal fee | $25K |
| Inventory (initial) | $75K – $150K |
| 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.
What do units actually make?
Average unit sales run 65% above the full-service restaurants norm.
Company-owned outlets only - not franchisee performance
Source: FDD 2024 · Item 19
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
$345K
12.0% margin
Unlevered ROIC
7%
EBITDA / total invested capital
Payback
13.5 yrs
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
FDD-reported earnings vs. model
The FDD reports $248K as EBITDAR. Our model estimates $345K SLEBITDA from the same revenue using category-average cost assumptions. These numbers differ because EBITDAR deducts different expense categories than our model.
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one BrewDog unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
7%
Below the 30–60% attractive-franchise band
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 BrewDog units return on equity?
Equity IRR · 5-yr
35.2%
4.51× MOIC
Year-1 DSCR
2.32×
EBITDA ÷ debt service
Equity required
$5.1M
on $14.4M purchase
Total debt
$9.3M
SBA $5.0M + senior + seller note
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2024 FDD
Financial Performance
Company-owned outlets only - not franchisee performance
- Avg gross sales
- $2.9M
- Per unit, per year
- Median gross sales
- $2.7M
- Avg ebitdar
- $248K
- Reported as EBITDAR in FDD Item 19
- Cash-on-cash
- 2.7%
- Based on EBITDAR / investment midpoint
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- revenue and ebitdar
- Sample size
- 6
- vs category median 18 · small
- Range (low → high)
- $1.2M→$5.0M
- Cohort dispersion (min → max)
- Reporting year
- 2023
- Fiscal year the figures cover
- Source filing
- FDD 2024
- Disclosed in the 2024 filing, covering 2023
- Transparency
- 9 / 10
- vs category median 3 / 10 · above
Compared against 805 Full-Service Restaurants brands
Revenue is only 0.6x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $2.9M/year in gross sales. Revenue-to-investment ratio: 0.6x. Company-owned outlets only - not franchisee performance.
Fee burden
Total ongoing fee load of 6.0% — below the Full-Service Restaurants average of 7.6%.
Disclosure
Transparency score 9/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Full-Service Restaurants averages
How BrewDog Compares
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 8
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 8
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
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
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 3 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.
3
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.
What could kill this investment?
The auditor flagged going-concern doubt (Item 21) — the single biggest risk here.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
BrewDog's micro-franchise network (8 units), modest unit economics, and thin profit margins present execution risk despite protected territories and no litigation.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · IndigoSpire CPA Group, LLC⚠ Going-concern note flagged
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 29 / 100 verdict
- 01MEDOnly 8 units system-wide with unknown growth trajectory suggests limited proven scalability and potential contraction risk
- 02MINORNet profit margin of 8.6% ($248,068 on $2.87M revenue) is thin for hospitality, leaving minimal buffer for underperformance or economic downturns
- 03MINORHigh initial investment ($3.4M-$5.75M) relative to modest average net income creates extended payback period (13-23 years)
- 04MINORRoyalty structure of 5% on total receipts (not net profit) provides BrewDog recurring revenue while franchisee bears operational risk
- 05MINORExtremely small unit count (8) raises questions about viability of support infrastructure, supply chain leverage, and brand leverage
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 1 mi |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | Yes |
| Arbitration location | Canal Winchester, Ohio |
| Jury trial waiver | Yes |
| Governing law | OH |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 30 hrs
- On-the-job training
- 50 hrs
- Training location
- Columbus, Ohio (franchisor's designated training locations)
- Ongoing training
- Required
- Site selection
- Franchisor must approve site; franchisee selects within approved Site Selection Area
- Franchisor financing
- Not offered
- Item 10
- POS system
- NCR
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: NCR
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a BrewDog franchise?
The total investment to open a BrewDog franchise ranges from $3.4M – $5.7M, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do BrewDog franchise owners earn?
According to Item 19 of the BrewDog FDD, the average gross sales per unit is $2.9M. The median is $2.7M. Important context: Company-owned outlets only - not franchisee performance. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the BrewDog FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the BrewDog FDD and qualifies whose outlets they describe.
What is BrewDog's franchise failure rate?
SBA 7(a) loan charge-off data is not available for BrewDog (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 BrewDog franchise locations are there?
As of their most recent FDD filing, BrewDog has 8 total units in the United States, including 0 franchised units and 8 company-owned units.
Is BrewDog a good franchise to buy?
FranchiseVerdict rates BrewDog as a D-grade franchise with a verdict score of 29 out of 100 (higher is better), 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.
For franchisors
Are you the franchisor?
If you represent BrewDog, you can request corrections or provide updated information.
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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.