Bud’s Place Franchise Cost, Revenue & Review 2026
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. The 2025 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $576K – $1.2M
- 26th pct Service Resta…
- Avg gross sales
- N/A
- 0 outlets
- Royalty
- N/A
- 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 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 $576K – $1.2M including a $75K franchise fee.
- RETURNSItem 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.
- RISKVerdict D (Below average), verdict score 30/100 (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
- Bud's Place Franchising, LLC
- Parent company
- Bud's Place HQF, LLC
- Ultimate parent
- DRM Holdings, LLC
- 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
- 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
- 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 24% below 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
- Greater of 7% of Gross Sales or $2,500 per week minimum r…
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | Weekly minimum royalty of $2,500 ($10,800/month) |
| 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 did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Bud’s Place unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
9%
Below the 30–60% attractive-franchise band
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
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.
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 average).
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
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 Bud’s Place Compares
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
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
- Projected new
- 3
- 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)
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.
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 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 |
| 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 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 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), 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?
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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.