Pedal PubFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Pedal Pub franchise requires a total initial investment of $115K – $281K, including a $40K franchise fee and an ongoing 8.0% royalty[2]. Per the 2024 FDD, average unit revenue was $469K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $115K – $281K
- 4th pct Service Resta…
- Avg gross sales
- $469K
- 2nd pct Service Resta…
- Royalty
- 8.0%
- 44th pct Service Resta…
- Units
- 21
- 28th 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
Bottom line
- Total investment $115K – $281K including a $40K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $469K/year (median $114K).
- Verdict A (Top Quintile) with a risk score of 41/100.
- System growing at 25.0% CAGR over 3 years with 21 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- PP Development, LLC
- Parent company
- PCH Entertainment LLC
- Incorporated in
- DE
- HQ
- 3212 Rice Street, St. Paul, MN 55126
- Auditor
- Copeland Buhl & Company PLLP
- Audited financials
- Franchisor revenue
- $1.9M
- vs $1.9M prior year
Overview
About
Franchisees operate pedal-powered party bikes (human-powered vehicles for groups) in urban markets, managing bookings, guiding drunk/intoxicated customers through city streets, maintaining equipment, hiring/managing staff, and handling customer experience. Revenue depends on party bookings, alcohol service ancillaries, and seasonal demand.
- CEO
- Todd Treml
- Headquarters
- MN
- Founded
- 2017
- FDD year
- 2024
- States available
- 10
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (3–6 mo) | $15K | $50K |
| Equipment, build-out, other | $60K | $191K |
| Total initial investment | $115K | $281K |
Source: Pedal Pub 2024 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
$38K
8.0% margin
Unlevered ROIC
16%
EBITDA / total invested capital
Payback
6.1 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $115K – $281K
- Better than avg vs category
- Liquid capital req'd
- $15K – $50K
- Better than avg vs category
- Franchise fee
- $20K – $40K
- Better than avg vs category
- Royalty
- 8.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 10.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 8.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $200 |
| Transfer fee | $20K |
| Renewal fee | $20K |
| Total fee load | 10.0% of rev |
Financial Performance
- Avg gross sales
- $469K
- Per unit, per year
- Median gross sales
- $114K
- Item 19 type
- gross_sales
- Sample size
- 13 units
- vs category median 13
- Range (low → high)
- $41K→$3.8M
- Cohort dispersion (min → max)
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How Pedal Pub Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 21
- Opened
- 3
- Last reporting year
- Closed
- 3
- Turnover rate
- 14.3%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 95%
- vs corporate-owned
- Net growth (yr3)
- +0.0%
- Net unit change last year
- 3-yr CAGR
- +25.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 2
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 20 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 8 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 8
- Loan volume
- $1.2M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 5
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Pedal Pub's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 4 lenders with concentration factor
- Per-state charge-off rates across 6 states
- Startup risk premium and job creation velocity
- 2-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Pedal Pub presents moderate-to-cautious risk due to unresolved litigation exposure, undisclosed profitability metrics, small system size with unknown growth, and inherent liability risks in the party bike business model.
Audited financials (Item 21)
Yes · Copeland Buhl & Company PLLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 41 / 100 rating
- 01HIGHActive litigation with pending motion to reconsider and anticipated refiling creates ongoing legal/liability exposure and potential for franchisor assessment/indemnification claims
- 02MEDNet income not disclosed in Item 19 prevents ROI validation; $468,825 average revenue against $114,645-$281,196 investment leaves unclear profit margins after 8-10% royalties
- 03MEDSmall unit count (21 locations) with unknown growth trajectory suggests limited system maturity and scalability; no disclosure of unit growth rate raises sustainability questions
- 04MINORHigh per-unit liability risk in party/alcohol-adjacent business model creates insurance cost uncertainty and franchisee personal liability exposure
- 05MEDFranchise fee ($39,900) represents 34-35% of minimum investment with no disclosed profitability metrics to justify early payback
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 | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | Population-based |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Minnesota |
| Litigation count | 2 |
Items 10, 11
Training & Operations
- Classroom training
- 10 hrs
- On-the-job training
- 26 hrs
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
44 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Pedal Pub · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Pedal Pub franchise?
The total investment to open a Pedal Pub franchise ranges from $115K – $281K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Pedal Pub franchise owners earn?
According to Item 19 of the Pedal Pub FDD, the average gross sales per unit is $469K. The median is $114K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Pedal Pub's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Pedal Pub (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 Pedal Pub franchise locations are there?
As of their most recent FDD filing, Pedal Pub has 21 total units in the United States, including 12 franchised units and 1 company-owned units. 3 new units were opened in the latest reporting year.
Is Pedal Pub a good franchise to buy?
FranchiseVerdict rates Pedal Pub as a A-grade franchise with a risk score of 41 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.