Bottom line
- Total investment $793K – $1.3M including a $25K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.4M/year (median $1.3M).
- Rated STRONG with a risk score of 44/100. SBA loan default rate of 0.0% across 92 loans (below the industry average).
- System growing at 24.4% CAGR over 3 years with 53 total units — strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
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 The Brass Tap unit return on the cash you put in?
Unlevered ROIC · per unit
21%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 The Brass Tap units return on equity?
Equity IRR · 5-yr
38.8%
5.16× MOIC
Year-1 DSCR
2.16×
EBITDA ÷ debt service
Equity required
$3.8M
on $12.6M purchase
Total debt
$8.8M
SBA $5.0M + senior + seller note
Overview
About
The Brass Tap operates full-service or casual-dining establishments centered on craft beverages (beer, spirits, wine) with food offerings. Franchisees manage daily bar/restaurant operations, staff scheduling, inventory purchasing, compliance with alcohol licensing, and customer service across table service and point-of-sale systems.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
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 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
The Brass Tap presents meaningful investment risk due to undisclosed net income, high capital requirements, rapid growth concentration on small unit base, and concerning franchisor financial status indicators.
Score breakdown · what drove the 44 / 100 rating
- 01MEDNet income not disclosed in Item 19 — unable to verify profitability claims or ROI timeline
- 02MINORHigh initial investment ($792,950–$1,279,550) with no transparent earnings data creates opacity around break-even period
- 03MINORRapid unit growth (21.4% YoY) on small base (53 units) may indicate aggressive recruitment over sustainable franchisee success
- 04HIGHFranchisor shows 'Going Concern: False' — potential financial instability or accounting red flag requiring clarification
- 05MED5% royalty on adjusted gross sales (not net) means franchisee liability increases even if profitability declines
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
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
46 numbers
One-time purchase · CSV download · Validation questions included
FDD download
The Brass Tap · FDD (2025) PDF