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FranchiseVerdict

How Much Does a Beerhead Bar & Eatery Franchise Cost?

Data from the 2023 Franchise Disclosure Document

Investment Summary

Total Investment

$746K – $1.6M

Franchise Fee

$45K

Royalty

6.0%

Ad Fund

2.5%

Cost Breakdown

Initial Franchise Fee

The initial franchise fee for Beerhead Bar & Eatery is $45K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.

Total Investment Range

Opening a Beerhead Bar & Eatery franchise requires a total investment of $746K – $1.6M. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.

Working capital alone ranges from $0 to $30K.

Ongoing Costs

Beyond the initial investment, Beerhead Bar & Eatery franchisees pay ongoing fees. The royalty fee is 6.0% of gross sales (Gross Sales). The advertising or brand fund contribution is 2.5% of gross sales.

Net Worth & Liquid Capital Requirements

Beerhead Bar & Eatery requires working capital of $0 – $30K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.

What Can You Earn?

Beerhead Bar & Eatery does not disclose earnings data in Item 19 of its Franchise Disclosure Document. Not all franchisors choose to publish financial performance representations, though this is a data point many prospective franchisees consider important.

How Do Banks View Beerhead Bar & Eatery?

SBA Loans Issued

3

Default Rate

0.0%

The SBA (Small Business Administration) tracks loan performance for franchise brands. Beerhead Bar & Eatery has 3 SBA-backed loans on record. The default rate is 0.0%, which is below the franchise industry average, indicating relatively lower lending risk. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.

Next Steps

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