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FranchiseVerdict

How Much Does a The Bar Method Franchise Cost?

Data from the 2024 Franchise Disclosure Document

Investment Summary

Total Investment

$356K – $513K

Franchise Fee

$43K

Royalty

6.0%

Ad Fund

2.0%

Cost Breakdown

Initial Franchise Fee

The initial franchise fee for The Bar Method is $43K. 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 The Bar Method franchise requires a total investment of $356K – $513K. 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 $15K to $27K.

Ongoing Costs

Beyond the initial investment, The Bar Method franchisees pay ongoing fees. The royalty fee is 6.0% of gross sales (Gross Revenue). The advertising or brand fund contribution is 2.0% of gross sales. There is also a technology fee of $299.

Net Worth & Liquid Capital Requirements

The Bar Method requires working capital of $15K – $27K 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?

According to The Bar Method's Item 19 financial performance representation:

$383KAvg. Gross Sales

Median gross sales: $329K

This figure comes from Item 19 of the FDD. Gross sales are not the same as take-home profit. After deducting royalties, ad fund fees, rent, labor, and COGS, net income is typically a fraction of gross revenue.

How Do Banks View The Bar Method?

SBA Loans Issued

51

Default Rate

20.6%

The SBA (Small Business Administration) tracks loan performance for franchise brands. The Bar Method has 51 SBA-backed loans on record. The default rate is 20.6%, which is near the franchise industry average. 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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