TapFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Tap franchise requires a total initial investment of $460K – $766K, including a $35K franchise fee and an ongoing 6.0% royalty[2]. Per the 2026 FDD, average unit revenue was $1.9M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $460K – $766K
- 30th pct Service Resta…
- Avg gross sales
- $1.9M
- 20th pct Service Resta…
- Royalty
- 6.0%
- 26th pct Service Resta…
- Units
- 4
- 10th 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
Each dollar invested generates 3.1x in gross revenue, well above the typical 1.5-2.5x range.
Started franchising in 2026. Newer systems carry more uncertainty but may offer better territories.
Bottom line
- Total investment $460K – $766K including a $35K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.9M/year.
- Verdict A (Top Quintile) with a risk score of 49/100.
- Emerging franchise: only 0 years of franchising with 4 units. Early-stage systems carry higher risk but may offer better territory availability.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Tap Franchise Group LLC
- Parent company
- Tap NYC, LLC
- Incorporated in
- DE
- HQ
- 1250 S. Miami Avenue #105, Miami, FL 33130
- Auditor
- SMITH, BUZZI & ASSOCIATES, LLC.
- Audited financials
Affiliated brands
- with a pr
- Pr
- Tap Commissary
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Tap franchisees operate what appears to be a beverage or tap-based retail concept, likely managing point-of-sale operations, inventory management, customer service, and day-to-day facility management. Revenue averages $1.6M annually, suggesting moderate-to-high foot traffic volume operations requiring staff management and local marketing execution.
- CEO
- Pedro Uchoa
- Headquarters
- FL
- Founded
- 2025
- FDD year
- 2026
- States available
- 2
FDD Item 7 · 2026 filing · 14 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $35K | $35K | |
| Travel and Living Expenses While Training | $4K | $4K | |
| Real Property Rent and Security Deposits (3 mos.) | $10K | $25K | |
| Leasehold Improvements | $200K | $350K | |
| Furniture, Fixtures, and Decor | $25K | $40K | |
| Initial Inventory and Supplies | $8K | $20K | |
| Signage | $5K | $12K | |
| Grand Opening Advertising | $6K | $20K | |
| Licenses, Permits, and Certifications | $2K | $3K | |
| Insurance (3 mos.) | $2K | $3K | |
| Kitchen Equipment, TV, Cameras, and POS System | $80K | $125K | |
| Professional Fees | $5K | $5K | |
| Additional Funds (3 months) | $80K | $125K | |
| Area Development Fee | $70K | $105K | |
| Total initial investment | $530K | $871K |
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.
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
$169K
9.0% margin
Unlevered ROIC
24%
EBITDA / total invested capital
Payback
4.2 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $460K – $766K
- Better than avg vs category
- Liquid capital req'd
- $80K – $125K
- Near category avg vs category
- Franchise fee
- $35K – $35K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Revenue · typical 6–8%
- Ad fund
- -n/d
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Transfer fee | $10K |
| Renewal fee | $5K |
| Total fee load | 6.0% of rev |
A 6.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $1.9M
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- Affiliate Outlets
- Sample size
- 4 units
- vs category median 13 · small
- Range (low → high)
- $1.1M→$2.7M
- 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 Tap Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 4
- Opened
- 0
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 1
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 16 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.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Tap presents caution-level risk due to an underdeveloped franchise system (4 units only), missing profitability disclosure, false going concern status, and unclear growth viability despite moderate unit economics.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $105,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · SMITH, BUZZI & ASSOCIATES, LLC.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 49 / 100 rating
- 01MINOROnly 4 franchised units with unknown growth trajectory suggests minimal system expansion and unproven scalability
- 02MEDNet income not disclosed in Item 19 prevents ROI validation; with $460k-$766k investment and $1.6M avg revenue, profitability is opaque
- 03HIGHGoing Concern status is FALSE, indicating potential financial instability or operational viability questions at franchisor level
- 04MINORHigh investment-to-revenue ratio (28-47% of first-year revenue needed upfront) with 6% royalty creates narrow margin for profitability
- 05MINORExtremely small unit count (4) raises questions about franchisor sustainability, support infrastructure, and supply chain leverage
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 |
| Territory type | population |
| Protected territory | Yes |
| Territory sizeℹ | 200,000 people |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 3 |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Florida |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 8 hrs
- On-the-job training
- 28 hrs
- Training location
- Franchisor's facility and on-site
- Franchisor financing
- Offered
- Item 10
- POS system
- Toast
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toast
Item 20 · call current owners
Franchisee Contacts
17 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Tap · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Tap franchise?
The total investment to open a Tap franchise ranges from $460K – $766K, 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 Tap franchise owners earn?
According to Item 19 of the Tap FDD, the average gross sales per unit is $1.9M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Tap's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Tap (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 Tap franchise locations are there?
As of their most recent FDD filing, Tap has 4 total units in the United States, including 0 franchised units and 4 company-owned units.
Is Tap a good franchise to buy?
FranchiseVerdict rates Tap as a A-grade franchise with a risk score of 49 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.