Bud’s Place Franchise Cost, Revenue & Review 2026
- Investment
- $576K – $1.2M
- Disclosed sales
- not disclosed
- SBA charge-off
- Not SBA-matched
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Bud's Place is a cannabis retail franchise operating licensed dispensaries in regulated markets. Franchisees run the stores, managing inventory, compliance, and customer service.
FranchiseVerdict summary · 2026
A Bud’s Place franchise requires a total initial investment of $576K – $1.2M, including a $75K franchise fee and an ongoing 7.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: partial✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored3 of 5 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $576K – $1.2M
- 26th pct Service Resta…
- Avg gross sales
- N/A
- 0 outlets
- Royalty
- 7.0%
- 36th pct Service Resta…
- Units
- 0
- 0th 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 median · 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 $576K – $1.2M including a $75K franchise fee, 7.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict D (Below average), verdict score 30/100 (higher is better).
- GROWTHFlat: no net change in franchised outlets in the latest year (0 opened, 0 closed) (Item 20).
- 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
- Bud's Place Franchising, LLC
- Parent company
- Bud's Place HQF, LLC
- FDD Item 1, page 7 of the 2025 FDD
- Ultimate parent
- DRM Holdings, LLC
- FDD Item 1, page 7 of the 2025 FDD
- CEO title
- President and Chief Financial Officer
- Ron Silberstein
- Incorporated in
- NV
- HQ
- 6220 Commerce Road, West Bloomfield, Michigan 48324
- Auditor
- DA Advisory Group PLLC
- Audited financials
- ⚠ 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
- CEO
- Ron Silberstein
- Headquarters
- MI
- Founded
- 2019
- FDD year
- 2025
- States available
- 0
Can you afford it, and what does the money buy?
Entry cost runs 31% above the typical full-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown15 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
- Top 40% of category vs category
- Liquid capital req'd
- $25K – $75K
- Top 40% of category vs category
- Franchise fee
- $75K – $75K
- Top 40% of category vs category
- Royalty
- 7.0%
- Set by a formula · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $110 |
| Training fee | $7K |
| Transfer fee | $3K |
| Renewal fee | $8K |
| Inventory (initial) | $15K – $31K |
| Total fee load | 8.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Bud’s Place makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Bud’s Place unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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: 2025 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 8.0% (near the Full-Service Restaurants median).
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 medians
How Bud’s Place Compares
Category median of published Full-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
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
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 0
- Item 20 Table 5
- Projected new
- 0
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
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
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)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
Two regulatory/administrative actions against principal Ron Silberstein: 2016 SEC settlement (audit procedure violations, $35K fine, barred from SEC practice temporarily) and 2019 Michigan Board of Accountancy consent order ($5K fine). No active franchise-related litigation disclosed.
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)
Item 21 states audited financial statements as of Dec 31 2022/2023/2024 are attached as Exhibit A, but the Exhibit A statements (balance sheet/income statement figures and the CPA's report) are not present in the OCR text provided; no franchisor financial figures or auditor name could be extracted. Franchisor is a startup (Bud's Place Franchising, LLC, formed 2019) with 0 franchised and 0 company-owned outlets.
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 30 / 100 verdict
- 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
- 05MINORGoing 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
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · 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 | 2 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 5 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 20 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 2 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Las Vegas, Nevada |
| Jury trial waiver | Yes |
| Governing law | NV |
| Litigation count | 2 |
View Item 3 litigation summary
Two regulatory/administrative actions against principal Ron Silberstein: 2016 SEC settlement (audit procedure violations, $35K fine, barred from SEC practice temporarily) and 2019 Michigan Board of Accountancy consent order ($5K fine). No active franchise-related litigation disclosed.
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 46 hrs
- Training location
- Franchisor corporate headquarters or affiliate Lounge or designated location
- Ongoing training
- Required
- Field support
- 5 hrs/yr
- On-site visits per year
- Time to open
- 12 mo
- From signing to launch
- Site selection
- Franchisee selects, subject to franchisor approval
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Bud’s Place?
Bud’s Place is franchised by Bud's Place Franchising, LLC. Its parent company is Bud's Place HQF, LLC. The ultimate parent named in the FDD is DRM Holdings, LLC. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Bud’s Place 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 Bud’s Place FDD and qualifies whose outlets they describe.
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 D-grade franchise with a verdict score of 30 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.