Barrel House
Barrel House offers pub-style food and beverages in a franchise format, featuring sandwiches, burgers, pizzas, and more. Known for casual dining with an extensive menu, it operates in the quick-service restaurant sector.
About Barrel House
Barrelhouse or Barrel House may refer to:A "juke joint", a bar or saloon. Originates from the storage of barrels of alcohol. An early form of jazz with wild, improvised piano, and an accented two-beat rhythm Barrelhouse Records, a record label The London Blues and Barrelhouse Club, a blues club in London founded by Alexis Korner and Cyril Davies The Barrelhouse Club, a rhythm and blues nightclub in Los Angeles, co-owned by Johnny Otis Barrelhouse Chuck (1958–2016), American Chicago blues musician Barrelhouse (band), a Dutch Blues band
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Barrel House franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Restaurant is estimated to be from $540,000 to $1,215,000 [p.1]. This amount includes the $41,500 to $46,500 that must be paid to the franchisor or its affiliate [p.1].
What is the initial franchise fee?
The initial franchise fee is payable upon execution of the franchise agreement or assignment agreement, but its payment is deferred until the franchisor completes its pre-opening obligations and the franchisee is open for business. [p.118, p.121]
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is currently 5% of gross weekly sales, while the technology access fee, which includes a monthly charge of $100 that may be adjusted once per year, is recognized monthly as amounts become due. Advertising costs are expensed as incurred; however, in the future, you might be required to participate in and support regional cooperative advertising programs where your contributions could be credited toward local marketing obligations. [p.65, p.82]
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
This isn't specified in the excerpts.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if you fail to obtain consent for a location within nine months after the date of the franchise agreement [p.109]. Additionally, the franchisor or its affiliate TBH may terminate the trademark license agreement if there is a material impairment of goodwill associated with the Marks due to misuse by the franchisee, or if the franchisee does not comply with quality instructions concerning the use of the Marks [p.26].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD does not provide details on specific net worth or liquid capital requirements for qualifying as a franchisee. However, it does mention that there are minimum restaurant capital requirements which can be adjusted by the company [p.85].
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory [p.24]. You have a Protected Territory, but the franchisor reserves the right to operate, or grant others the right to operate Barrel House restaurants at 'Captive Market Locations' within your Protected Territory [p.24]. These locations include airports, sports facilities, hospitals, and other similar sites that do not have direct street access.
What training and ongoing support does the franchisor provide?
The franchisor provides initial training to the Operating Principal and two key management personnel, which includes classroom instruction and on-site training covering Restaurant operations, equipment usage and maintenance, customer service, marketing, and cost control. This training is conducted in Davenport, Iowa, or an alternative location designated by the franchisor, and lasts up to 10 days. Ongoing support includes development of certain training materials, financial and budgeting support, and store monitoring and inspections [p.62].
How many franchised outlets are there, and how many have closed or been terminated?
According to [p.33], as of December 31, 2023, there is a list of all Barrel House franchisees, but the exact number of franchised outlets is not specified in the excerpts. Additionally, no franchisee has had their Barrel House franchise terminated, canceled, or not renewed, and no franchisee has voluntarily or involuntarily ceased to do business under the franchise agreement.
Does the franchisor share any financial performance or earnings information?
The franchisor only shares written substantiation for the financial performance representation upon reasonable request [p.32]. They do not make any financial performance representations and do not authorize their employees or representatives to make such representations either orally or in writing, except for actual records of an existing outlet if you are purchasing one [p.30, p.62].
What am I restricted to selling, and where must I buy supplies?
You are required to sell only those products and services approved by the franchisor [p.28]. Additionally, you may have to purchase or lease items from the franchisor or a limited group of suppliers they designate, which might be more expensive than other options [p.3].