Mr Brews Taphouse
Bottom line
- Total investment $502K – $962K including a $45K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.1M/year (median $1.0M).
- Rated STRONG with a risk score of 54/100. SBA loan default rate of 0.0% across 15 loans (below the industry average).
Item 1 · who you're contracting with
The Franchisor
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 Mr Brews Taphouse unit return on the cash you put in?
Unlevered ROIC · per unit
22%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Mr Brews Taphouse units return on equity?
Equity IRR · 5-yr
45.9%
6.62× MOIC
Year-1 DSCR
1.96×
EBITDA ÷ debt service
Equity required
$2.5M
on $10.7M purchase
Total debt
$8.2M
SBA $5.0M + senior + seller note
Overview
About
Mr Brews Taphouse franchisees operate full-service taphouse bars featuring craft beer selections, food service, and entertainment (likely sports viewing/gaming). Daily operations include staff management, inventory control, customer service, food/beverage preparation, and marketing in a competitive hospitality segment.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 5 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 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Small, early-stage bar/restaurant franchise with undisclosed franchisee profitability, high capital requirements, and ambiguous franchisor financial health.
Score breakdown · what drove the 54 / 100 rating
- 01MEDNo Item 19 (Average Unit Volume) disclosed despite $1.07M average revenue claim — cannot verify profitability or typical franchisee performance
- 02MINORMinimum royalty of $575/week ($29,900/year) creates break-even pressure on lower-performing locations
- 03MEDOnly 11 total units with unknown growth trajectory — extremely small franchise system with limited track record
- 04MINORHigh initial investment ($501.5K–$962K) relative to system size and maturity indicates capital-intensive model with unproven ROI
- 05MINORNo net income disclosure prevents assessment of actual franchisee profitability after all expenses
- 06HIGH'Going Concern' listed as False — potential financial stability concerns at franchisor level
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
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
13 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Mr Brews Taphouse · FDD (2026) PDF