FranchiseVerdict
Sedona Taphouse logo
FV-02273·STRONGExcellent81

Sedona Taphouse

Food & Beverage - Full ServiceFranchising since 2014Website
Investment
$1.7M – $2.5M
95th pct Full Service
Avg revenue
57th pct Full Service
Royalty
4.5%
13th pct Full Service
Units
17
51st pct Full Service
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $1.7M – $2.5M including a $35K franchise fee, 4.5% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated STRONG with a risk score of 46/100. SBA loan default rate of 0.0% across 13 loans (below the industry average).
  • No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.

Item 1 · who you're contracting with

The Franchisor

Legal entity
DJB Franchising, LLC
Parent company
DJB Hospitality Holding Co., Inc.
Incorporated in
Delaware
HQ
812 Moorefield Drive, Suite 301, Richmond, VA 23236
Auditor
Keiter
Audited financials
Franchisor revenue
$2.8M
vs $2.9M prior year

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 Sedona Taphouse unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $1.7M–$2.5M
Working capital
$
FDD reports $60K–$80K

Unlevered ROIC · per unit

6%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$128K
EBITDA margin
17.0%
Total invested
$2.2M
Payback
202 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Sedona Taphouse franchisees operate casual dining and bar establishments featuring craft beers, wine, and food service. Day-to-day operations include managing servers and bartenders, maintaining inventory of rotating tap selections, handling food preparation or vendor relationships, managing customer service, and overseeing P&L for a full-service restaurant/bar concept.

CEO
Dennis Barbaro
Founded
2011
FDD year
2025
States available
8

Item 7 · what it costs

The Vitals

Total investment
$1.7M – $2.5M
All-in to open one unit
Liquid capital
$60K – $80K
Cash you must have on hand
Franchise fee
$35K
Royalty
4.5%
Gross Sales · typical 6–8%
Ad fund
1.5%
typical 3–5%
Total fee load
6.0%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
17
Opened
1
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
3
Corporate units in the system
% franchised
82%
vs corporate-owned
Net growth (yr3)
+7.7%
Net unit change last year
3-yr CAGR
+7.7%
Compounded over last 3 years
2023
14+1
Franchised units
2024
13
Franchised units
2025
13
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 17 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 17 states
Not registered

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.

Total loans
13
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

46
Risk · 0-100
STRONG46 / 100

Sedona Taphouse presents moderate-to-caution risk due to undisclosed unit economics, minimal system growth, and lack of financial transparency that prevents proper ROI validation.

Score breakdown · what drove the 46 / 100 rating

  1. 01MINORNo Item 19 financial disclosure (average revenue and net income not provided) — impossible to validate ROI claims
  2. 02MEDSlow unit growth of 7.7% YoY with only 17 total units suggests limited brand momentum and market traction
  3. 03MINORHigh initial investment ($1.65M–$2.51M) paired with unknown profitability creates significant financial exposure
  4. 04HIGHNo going concern statement indicates potential financial strain at corporate level
  5. 05MINORFranchise fee of $35,000 is moderate, but lack of transparency on unit economics raises questions about franchisor sustainability

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Radius
Protected territory
Yes
Initial term
10 years
Renewal term
10 years
Online sales rights
Granted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Virginia

Item 11

Training & Operations

Classroom training
8 hrs
On-the-job training
444 hrs
POS system
Toast POS
Operating tech stack

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

25 numbers

Locked
(860) 240-••••
CT
(217) 782-••••
IL
(317) 232-••••
IN

One-time purchase · CSV download · Validation questions included

FDD download

Sedona Taphouse · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above