Bud’s PlaceFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Bud’s Place franchise requires a total initial investment of $576K – $1.2M, including a $75K franchise fee. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $576K – $1.2M
- 36th pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- N/A
- Units
- 0
- 0th 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 $576K – $1.2M including a $75K franchise fee.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- 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
- Bud’s Place Franchising, LLC
- Parent company
- Bud’s Place HQF, LLC
- Ultimate parent
- DRM Holdings, LLC
- CEO title
- President and Chief Financial Officer
- Ronald N. Silberstein
- Incorporated in
- NV
- 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.
Affiliated brands
- owns the federal trademark
- DRM Holdings
Other brands the franchisor or its parent operates (Item 1).
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
- Headquarters
- MI
- Founded
- 2019
- FDD year
- 2025
- States available
- 0
FDD Item 7 · 2025 filing · 15 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $75K | $75K | |
| Rent - 3 Monthsnot refundable | $30K | $60K | |
| Lease & Utility Security Deposit | $10K | $30K | |
| Design & Architect Feesnot refundable | $5K | $12K | |
| Leasehold Improvementsnot refundable | $300K | $618K | |
| Signagenot refundable | $3K | $13K | |
| Equipment, Furniture and Fixturesnot refundable | $90K | $206K | |
| Point of Sale & Computer Equipmentnot refundable | $3K | $7K | |
| Business Licenses & Permits (Not Including Beer/Wine License or liquor License)not refundable | $5K | $18K | |
| Professional Feesnot refundable | $2K | $6K | |
| Insurance - 3 Monthsnot refundable | $2K | $19K | |
| Initial Inventorynot refundable | $15K | $31K | |
| Training Expensesnot refundable | $1K | $7K | |
| Grand Opening Marketingnot refundable | $10K | $21K | |
| Additional Funds - 3 Monthsnot refundable | $25K | $75K | |
| Total initial investment | $576K | $1.2M |
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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $576K – $1.2M
- Better than avg vs category
- Liquid capital req'd
- $25K – $75K
- Better than avg vs category
- Franchise fee
- $65K – $75K
- Near category avg vs category
- 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
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $110 |
| Transfer fee | $3K |
| Renewal fee | $8K |
| Total fee load | 8.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Full-Service Restaurants averages
How Bud’s Place Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 0
- 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)
- Company-owned
- 0
- Corporate units in the system
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 3
- Franchisor's next-year forecast
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).
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.
Available to sell in · Item 12
- California
- Hawaii
- Illinois
- Maryland
- Michigan
- Minnesota
- New York
States where the franchisor is registered to sell new franchises (FDD registration filings).
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
System in apparent distress with zero transparent unit data, regulatory/SEC history, missing financial disclosures, and high minimum royalties—investment viability cannot be assessed.
Litigation (Item 3)
Ronald N. Silberstein settled with SEC on June 6, 2016 (File No. 3-17277) regarding inadequate audit procedures, paying $35,000 fine and barred from practicing before SEC for 5 years. Michigan Department of Licensing and Regulatory Affairs issued Formal Complaint on October 23, 2018 (File No. 11-17-331963) for Occupational Code violation; settled via Consent Order on May 1, 2019 with $5,000 fine. CPA license remains active in Michigan.
Largest disclosed settlement: $35,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · DA Advisory Group PLLC⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 62 / 100 rating
- 01MEDZero disclosed franchise units with unknown growth trajectory indicates either brand collapse, complete system rebuild, or intentional opacity
- 02MINORSEC settlement (2016) for audit procedure violations and Michigan regulatory consent order (2019) suggest financial reporting and compliance issues
- 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
- 04MINORHigh minimum royalty ($2,500/week = $130K/year) on unknown average unit volumes creates severe downside risk for franchisees
- 05HIGHGoing Concern flag combined with zero active units raises solvency and ongoing franchisor support concerns
- 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
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 2 |
| Territory type | Radius |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 5 mi |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 2 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Nevada |
| Litigation count | 2 |
View Item 3 litigation summary
Ronald N. Silberstein settled with SEC on June 6, 2016 (File No. 3-17277) regarding inadequate audit procedures, paying $35,000 fine and barred from practicing before SEC for 5 years. Michigan Department of Licensing and Regulatory Affairs issued Formal Complaint on October 23, 2018 (File No. 11-17-331963) for Occupational Code violation; settled via Consent Order on May 1, 2019 with $5,000 fine. CPA license remains active in Michigan.
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 46 hrs
- Training location
- franchisor headquarters or specified location
- Ongoing training
- Required
- Field support
- 40 hrs/yr
- On-site visits per year
- Franchisor financing
- Offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
15 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Bud’s Place · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Bud’s Place franchise?
The total investment to open a Bud’s Place franchise ranges from $576K – $1.2M, with an initial franchise fee of $75K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Bud’s Place franchise owners earn?
Bud’s Place does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Bud’s Place's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Bud’s Place (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.
Is Bud’s Place a good franchise to buy?
FranchiseVerdict rates Bud’s Place 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.
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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.