FranchiseVerdict
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FV-00411·CAUTIONStandard76

Bud’s Place

OtherFranchising since 2019Website
Investment
$576K – $1.2M
87th pct Other
Avg revenue
50th pct Other
Royalty
Units
0
0th pct Other
SBA default

Bottom line

  • Total investment $576K – $1.2M including a $75K franchise fee.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated CAUTION with a risk score of 70/100.
  • 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

Legal entity
Bud’s Place Franchising, LLC
Parent company
Bud’s Place HQF, LLC
Incorporated in
Nevada
HQ
6220 Commerce Road, West Bloomfield, Michigan 48324
Auditor
DA Advisory Group PLLC
Audited financials
Franchisor revenue
$0
vs $0 prior year
⚠ Going-concern note
Disclosed in FDD 2025
Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.

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 Bud’s Place unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $576K–$1.2M
Working capital
$
FDD reports $25K–$75K

Unlevered ROIC · per unit

13%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$120K
EBITDA margin
16.0%
Total invested
$938K
Payback
94 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Bud's Place appears to be a cannabis retail franchise operating in regulated markets. Day-to-day operations likely include retail inventory management, compliance with state/local cannabis licensing requirements, point-of-sale transactions, staff training on product knowledge and legal regulations, and maintaining detailed seed-to-sale tracking documentation required by cannabis regulators.

CEO
Ronald N. Silberstein
Founded
2019
FDD year
2025
States available
0

Item 7 · what it costs

The Vitals

Total investment
$576K – $1.2M
All-in to open one unit
Liquid capital
$25K – $75K
Cash you must have on hand
Franchise fee
$75K
Royalty
The greater of 7% (or 6% for a military veteran or social…
Ad fund
1.0%
typical 3–5%
Total fee load
8.0%
vs 9–13% typical

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

Total units
0
Opened
0
Last reporting year
Closed
0
Company-owned
0
Corporate units in the system
2023
0±0
Franchised units
2024
0
Franchised units
2025
0
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 15 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 15 states
Not registered

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.

No SBA loan data available for this brand.

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

70
Risk · 0-100
CAUTION70 / 100

System in apparent distress with zero transparent unit data, regulatory/SEC history, missing financial disclosures, and high minimum royalties—investment viability cannot be assessed.

Score breakdown · what drove the 70 / 100 rating

  1. 01MEDZero disclosed franchise units with unknown growth trajectory indicates either brand collapse, complete system rebuild, or intentional opacity
  2. 02MINORSEC settlement (2016) for audit procedure violations and Michigan regulatory consent order (2019) suggest financial reporting and compliance issues
  3. 03MEDNo Item 19 (average revenue/net income) disclosed—impossible to validate ROI on $576K–$1.2M investment or assess $2,500 weekly minimum royalty sustainability
  4. 04MINORHigh minimum royalty ($2,500/week = $130K/year) on unknown average unit volumes creates severe downside risk for franchisees
  5. 05HIGHGoing Concern flag combined with zero active units raises solvency and ongoing franchisor support concerns
  6. 06MED10-year term lock-in with protected territory but no performance benchmarks or exit clauses disclosed

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Radius
Protected territory
Yes
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
2
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
Nevada

Item 11

Training & Operations

Classroom training
40 hrs
On-the-job training
46 hrs

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

15 numbers

Locked
(360) 902-••••
WA
(212) 416-••••
NY
(605) 773-••••
SD

One-time purchase · CSV download · Validation questions included

FDD download

Bud’s Place · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above