JL BeersFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A JL Beers franchise requires a total initial investment of $1.2M – $3.3M, including a $50K franchise fee and an ongoing 4.0% royalty[2]. Per the 2025 FDD, average unit revenue was $1.4M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $1.2M – $3.3M
- 45th pct Service Resta…
- Avg gross sales
- $1.4M
- 15th pct Service Resta…
- Royalty
- 4.0%
- 3rd pct Service Resta…
- Units
- 10
- 21st 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.
Franchised units fell from 8 to 3 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $1.2M – $3.3M including a $50K franchise fee, 4.0% ongoing royalty.
- Average unit revenue of $1.4M/year (median $1.5M).
- Verdict A (Top Quintile) with a risk score of 37/100.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- JL Beers Franchising, Inc.
- Predecessor
- and several related entities currently operate Restaurants (see below)
- Prior franchisor entity
- Incorporated in
- ND
- HQ
- 16 Broadway, Suite 208, Fargo, North Dakota 58102
- Auditor
- Eide Bailly LLP
- Audited financials
- Franchisor revenue
- $251K
- vs $262K prior year
Affiliated brands
- JL Beers of America
Other brands the franchisor or its parent operates (Item 1).
Overview
About
JL Beers franchisees operate casual dining establishments (brewpub/sports bar format) serving food, craft beverages, and alcohol in protected territories. Day-to-day operations include staff management, inventory control, food preparation, beverage service, and marketing to drive traffic and same-store sales growth.
- CEO
- Lance Thorson
- Headquarters
- ND
- Founded
- 2013
- FDD year
- 2025
- States available
- 3
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $270K | $330K |
| Equipment, build-out, other | $903K | $2.9M |
| Total initial investment | $1.2M | $3.3M |
Source: JL Beers 2025 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
$194K
13.5% margin
Unlevered ROIC
8%
EBITDA / total invested capital
Payback
13.2 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $1.2M – $3.3M
- Near category avg vs category
- Liquid capital req'd
- $270K – $330K
- Near category avg vs category
- Franchise fee
- $50K – $50K
- Better than avg vs category
- Royalty
- 4.0%
- Net Sales · typical 6–8%
- Ad fund
- 0.5%
- typical 3–5%
- Total fee load
- 4.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Marketing / ad fund | 0.5% of gross sales |
| Transfer fee | $25K |
| Renewal fee | $10K |
| Total fee load | 4.5% of rev |
A 4.5% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $1.4M
- Per unit, per year
- Median gross sales
- $1.5M
- Item 19 type
- net_sales
- Sample size
- 10 units
- vs category median 13
- Range (low → high)
- $972K→$1.7M
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
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 JL Beers Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 10
- Opened
- 0
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 7
- Corporate units in the system
- % franchised
- 30%
- vs corporate-owned
- Net growth (yr3)
- +0.0%
- Net unit change last year
- 3-yr CAGR
- +0.0%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Continuity rate
- 100.0%
- Units that stayed open
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 3 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
3
states with franchisees (per FDD Item 12)
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
JL Beers presents elevated risk due to undisclosed profitability data, micro-scale system with unknown growth, franchisor going concern issues, and high capital requirements with limited unit performance visibility.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Eide Bailly LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: No
Score breakdown · what drove the 37 / 100 rating
- 01MINORNo net income disclosure (Item 19) prevents ROI validation and profitability assessment
- 02MEDOnly 10 units system-wide indicates minimal scale, limited support infrastructure, and high failure concentration risk
- 03HIGHGoing Concern status is FALSE — suggests potential franchisor financial distress or instability
- 04MINORUnknown unit growth trajectory raises questions about system momentum and franchisee retention
- 05MINORHigh investment range ($1.2M–$3.3M) relative to small 10-unit system creates disproportionate risk exposure
- 06MINORDual royalty structure ($500/week minimum) means low-revenue locations face fixed cost burden regardless of sales performance
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 | 15 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| 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 |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | State where Restaurant is located |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 28 hrs
- On-the-job training
- 126 hrs
- Training location
- On-site and classroom
- Franchisor financing
- Offered
- Item 10
- POS system
- SpotOn
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: SpotOn
Item 20 · call current owners
Franchisee Contacts
5 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
JL Beers · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a JL Beers franchise?
The total investment to open a JL Beers franchise ranges from $1.2M – $3.3M, 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 JL Beers franchise owners earn?
According to Item 19 of the JL Beers FDD, the average gross sales per unit is $1.4M. The median is $1.5M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is JL Beers's franchise failure rate?
SBA 7(a) loan charge-off data is not available for JL Beers (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 JL Beers franchise locations are there?
As of their most recent FDD filing, JL Beers has 10 total units in the United States, including 8 franchised units and 7 company-owned units.
Is JL Beers a good franchise to buy?
FranchiseVerdict rates JL Beers as a A-grade franchise with a risk score of 37 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.