BrewDogFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A BrewDog franchise requires a total initial investment of $3.4M – $5.8M, including a $50K franchise fee and an ongoing 5.0% royalty[2]. Per the 2024 FDD, average unit revenue was $2.9M[2]. Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $3.4M – $5.8M
- 48th pct Service Resta…
- Avg gross sales
- $2.9M
- 25th pct Service Resta…
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 8
- 18th 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
At 0.6x revenue per dollar invested, this system underperforms the typical 1.5-2.5x range.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $3.4M – $5.8M including a $50K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $2.9M/year (median $2.7M), with an estimated 5% cash-on-cash return (based on EBITDAR).
- Verdict B (Above Average) with a risk score of 62/100.
- 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
- BrewDog Franchising LLC
- Parent company
- BrewDog USA Inc.
- Incorporated in
- OH
- HQ
- 96 Gender Road, Canal Winchester, Ohio 43110
- Auditor
- IndigoSpire CPA Group
- 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
Franchisees operate BrewDog branded gastropubs combining craft beer service with food operations. Day-to-day involves managing on-premise beverage and dining service, staff scheduling, inventory management, maintaining brand standards, and driving local marketing within protected territory.
- CEO
- John Graham
- Headquarters
- OH
- Founded
- 2019
- FDD year
- 2024
- States available
- 3
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 | $5.8M |
Source: BrewDog 2024 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
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
13.6 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $3.4M – $5.8M
- Near category avg vs category
- Liquid capital req'd
- $50K – $200K
- Better than avg vs category
- Franchise fee
- $50K – $50K
- 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
- Payback period
- 18.4 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 |
| Transfer fee | $3K |
| Renewal fee | $25K |
| 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
- $2.9M
- Per unit, per year
- Median gross sales
- $2.7M
- Avg ebitdar
- $248K
- Reported as EBITDAR in FDD Item 19
- Cash-on-cash
- 5.4%
- Based on EBITDAR / investment midpoint
- Item 19 type
- Affiliate-owned outlets
- Sample size
- 6 units
- vs category median 13 · small
- Range (low → high)
- $1.2M→$5.0M
- Cohort dispersion (min → max)
- Transparency
- 10 / 5
- vs category median 4 / 5 · above
Compared against 1264 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.
vs Full-Service Restaurants averages
How BrewDog Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 8
- Opened
- 0
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 8
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 14 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
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
BrewDog's micro-franchise network (8 units), modest unit economics, and thin profit margins present execution risk despite protected territories and no litigation.
Audited financials (Item 21)
Yes · IndigoSpire CPA Group⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 62 / 100 rating
- 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| 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 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Ohio |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 64 hrs
- On-the-job training
- 136 hrs
- POS system
- NCR
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: NCR
Item 20 · call current owners
Franchisee Contacts
15 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
BrewDog · FDD (2024) PDF
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 – $5.8M, 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. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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 B-grade franchise with a risk score of 62 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.
For franchisors
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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.