Sedona TaphouseFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Sedona Taphouse franchise requires a total initial investment of $1.7M – $2.5M, including a $35K franchise fee and an ongoing 4.5% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 0.0% charge-off rate across 11 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $1.7M – $2.5M
- 47th pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 4.5%
- 6th pct Service Resta…
- Units
- 17
- 26th pct Service Resta…
- SBA default
- 0.0%
- system-wide median varies by category
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
Only 0.0% of 11 SBA loans charged off, well below the 16% franchise average.
Franchised units fell from 14 to 13 over 3 years. Investigate why operators are leaving.
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.
- Verdict A (Top Quintile) with a risk score of 43/100. SBA loan charge-off rate of 0.0% across 11 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- 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.
- CEO title
- President and Chief Executive Officer
- Dennis Barbaro
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- DE
- HQ
- 812 Moorefield Drive, Suite 301, Richmond, VA 23236
- Auditor
- Keiter
- Audited financials
- Franchisor revenue
- $2.8M
- vs $2.9M prior year
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
- Headquarters
- VA
- Founded
- 2011
- FDD year
- 2025
- States available
- 8
FDD Item 7 · 2025 filing · 23 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $20K | $35K | |
| Pre-opening Trainer Payroll | $20K | $40K | |
| Travel Expenses for Trainersnot refundable | $2K | $19K | |
| Additional Initial Training (each person beyond four) | $0 | $2K | |
| Leasehold Improvementsnot refundable | $1.1M | $1.7M | |
| Furniture, Fixtures and Equipment | $225K | $350K | |
| Signage | $16K | $25K | |
| Point of Sale System, Computers, Printers, Other Hardware and Business Softwarenot refundable | $14K | $20K | |
| Small Wares | $15K | $30K | |
| Inventory | $50K | $65K | |
| Televisions | $3K | $5K | |
| Menus | $1K | $2K | |
| Decor Pictures | $5K | $8K | |
| Prepaid Rent and Security Deposit | $8K | $20K | |
| Miscellaneous Deposits | $3K | $10K | |
| Travel, Living Expenses and Salaries During Initial Training | $23K | $36K | |
| Opening Parties | $6K | $8K | |
| Legal and Accounting Fees | $4K | $20K | |
| Architect | $18K | $38K | |
| Initial Advertising | $5K | $7K | |
| Total initial investment | $1.7M | $2.5M |
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
- $1.7M – $2.5M
- Near category avg vs category
- Liquid capital req'd
- $60K – $80K
- Near category avg vs category
- Franchise fee
- $20K – $35K
- Better than avg vs category
- Royalty
- 4.5%
- Gross Sales · typical 6–8%
- Ad fund
- 1.5%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.5% of gross sales |
| Marketing / ad fund | 1.5% of gross sales |
| Training fee | $2K |
| Transfer fee | $18K |
| Renewal fee | $9K |
| Total fee load | 6.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Full-Service Restaurants averages
How Sedona Taphouse Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 17
- Opened
- 1
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- 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
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 2
- Franchisor's next-year forecast
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).
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 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 11
- Loan volume
- $12.9M
- Median loan
- $1.4M
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 6
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Sedona Taphouse's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 5 lenders with concentration factor
- Per-state charge-off rates across 5 states
- Startup risk premium and job creation velocity
- 5-year lending trend
Instant access. No subscription.
With a 0.0% charge-off rate across 11 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
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.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Keiter
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: No
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 43 / 100 rating
- 01MINORNo Item 19 financial disclosure (average revenue and net income not provided) — impossible to validate ROI claims
- 02MEDSlow unit growth of 7.7% YoY with only 17 total units suggests limited brand momentum and market traction
- 03MINORHigh initial investment ($1.65M–$2.51M) paired with unknown profitability creates significant financial exposure
- 04HIGHNo going concern statement indicates potential financial strain at corporate level
- 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
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius |
| Protected territory | Yes |
| Territory radius | 1 mi |
| Online sales rightsℹ | Granted |
| 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 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Virginia |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 8 hrs
- On-the-job training
- 444 hrs
- Ongoing training
- Required
- Field support
- 80 hrs/yr
- On-site visits per year
- POS system
- Toast POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toast POS
Item 20 · call current owners
Franchisee Contacts
25 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Sedona Taphouse · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Sedona Taphouse franchise?
The total investment to open a Sedona Taphouse franchise ranges from $1.7M – $2.5M, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Sedona Taphouse franchise owners earn?
Sedona Taphouse 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 Sedona Taphouse's franchise failure rate?
Based on SBA 7(a) loan data, Sedona Taphouse has a charge-off rate of 0.0% across 11 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Sedona Taphouse franchise locations are there?
As of their most recent FDD filing, Sedona Taphouse has 17 total units in the United States, including 14 franchised units and 3 company-owned units. 1 new units were opened in the latest reporting year.
Is Sedona Taphouse a good franchise to buy?
FranchiseVerdict rates Sedona Taphouse as a A-grade franchise with a risk score of 43 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
Are you the franchisor?
If you represent Sedona Taphouse, you can request corrections or provide updated information.
Claim this brandOther Full-Service Restaurants franchises
Compare similar franchise opportunities in the Full-Service Restaurants category
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.