Sedona Taphouse Franchise Cost, Revenue & Review 2026
- Investment
- $1.7M – $2.5M
- Disclosed sales
- not disclosed
- SBA charge-off
- Limited · 11 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Sedona Taphouse is a full-service franchise pairing craft beer and wine with an American gastropub menu. Franchisees run the restaurants, managing the kitchen, bar, and dining service.
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]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $1.7M – $2.5M
- 37th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 4.5%
- 6th pct Service Resta…
- Units
- 17
- 18th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Full-Service Restaurants median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $1.7M – $2.5M including a $35K franchise fee, 4.5% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict B (Above average), verdict score 63/100 (higher is better).
- GROWTHPositive: net +1 franchised outlets in the latest year (1 opened, 0 closed); 1 signed but not yet open (Item 20).
- DATAThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- DJB Franchising, LLC
- Parent company
- DJB Hospitality Holding Co., Inc.
- FDD Item 1, page 7 of the 2025 FDD
- Predecessor
- Sedona Taphouse, LLC
- Prior franchisor entity
- CEO title
- President and CEO
- Dennis Barbaro
- Founder active
- Yes
- Original founder still leading the business
- 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
Overview
About
- CEO
- Dennis Barbaro
- Headquarters
- VA
- Founded
- 2011
- FDD year
- 2025
- States available
- 8
Can you afford it, and what does the money buy?
Entry cost runs 207% above the typical full-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown23 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
- Top 40% of category vs category
- Liquid capital req'd
- $60K – $80K
- Top 40% of category vs category
- Franchise fee
- $35K – $35K
- Top 40% of category vs category
- Royalty
- 4.5%
- 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 |
| Inventory (initial) | $50K – $65K |
| Total fee load | 6.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Sedona Taphouse makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Sedona Taphouse unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 6.0% (near the Full-Service Restaurants median).
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System expanding at 7.7% CAGR over 3 years across 17 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Full-Service Restaurants medians
How Sedona Taphouse Compares
Category median of published Full-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
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
- N/A
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 82%
- vs corporate-owned
- Net growth (3-yr)
- +7.7%
- Net unit change over 3 years
- 3-yr CAGR
- +7.7%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 1
- 0.06 per open outlet · Item 20 Table 5
- Projected new
- 2
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 7 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.
Where the owners are · Item 20 owner list
11 current owners across 7 states.
- VA 3
- KY 2
- MI 2
- CT 1
- HI 1
- NJ 1
- NY 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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
- Limited · 11 loans
- Limited SBA coverage: 11 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 11 loans
- 5-yr charge-off
- Limited · 11 loans
- Loans approved 2021+
- Active lenders
- 6
- Defaults
- 0
- Typical loan rate
- 7.0%
- avg rate to borrowers
- Franchised industry avg
- 13.2%
- n=4,117 loans
- Jobs supported
- 709
- 6.3 per loan
- Lender concentration
- 38%
- top lender's share
Borrower mix: 100% went to startups / new businesses, 0% to established operators
Franchise vs independent — in full-service restaurants, franchised businesses charge off at 13.2% vs 9.7% for independents — franchising is associated with 36% higher SBA default risk in this category.
Top lenders financing Sedona Taphouse franchisees
Showing 3 of 6 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Sedona Taphouse from SBA 7(a) FOIA data.
- Principal loss rate
- 0.0%
- Avg SBA guarantee
- 75%
- Avg interest rate
- 6.96%
- Lender concentration
- 37.5%
- Job velocity
- 6.3 per $100K
- NAICS benchmark
- 7.4%
- NAICS 722511
- Jobs supported
- 709
Top SBA lendersTop lender holds 38% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Brookline Bank, a Division of Beacon Bank and Trust | 3 | $4.6M | 0.0% |
| 2 | Truist Bank | 2 | $2.6M | 0.0% |
| 3 | Fifth Third Bank | 1 | $604K | N/A |
| 4 | Superior National Bank | 1 | $1.9M | 0.0% |
| 5 | The Huntington National Bank | 1 | $1.4M | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| PAPennsylvania | 3 | 0 | 0.0% |
| MIMichigan | 2 | 0 | 0.0% |
| KYKentucky | 1 | 0 | -- |
| TNTennessee | 1 | 0 | -- |
| VAVirginia | 1 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
17-unit restaurant franchisor with no litigation, no bankruptcy, and no going-concern issues. Positive 7.7% net growth and audited financials; the only concern is no Item 19 earnings disclosure.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
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)
Item 21 states audited financial statements of the franchisor, DJB Franchising, LLC (balance sheets as at Dec 31, 2024/2023/2022 and related statements of operations, members' equity and cash flows) are attached as Exhibit D. The Exhibit D statements are not present as machine-readable text in this file (scanned/image exhibit), so no balance-sheet or income figures could be extracted. State addenda note the franchisor 'has no fixed assets with which to support the franchise system.' Auditor/CPA firm name not present in extractable text.
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 63 / 100 verdict
- 01MINORNo Item 19 earnings disclosure
- 02MINORNo litigation or bankruptcy
- 03MINORAudited financials, positive 7.7% net growth
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| 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 |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 6 |
| Mandatory arbitration | Yes |
| Arbitration location | Richmond, Virginia |
| 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
- Site selection
- franchisee, subject to franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Toast POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toast POS
Item 20 · call current owners
Franchisee Contacts
11 owners to call
Name · phone · city · state. Extracted from FDD Item 20
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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Sedona Taphouse?
Sedona Taphouse is franchised by DJB Franchising, LLC. Its parent company is DJB Hospitality Holding Co., Inc.. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Sedona Taphouse FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Sedona Taphouse FDD and qualifies whose outlets they describe.
What is Sedona Taphouse's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Sedona Taphouse (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 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 B-grade franchise with a verdict score of 63 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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?
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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.