Brass Tap
The Brass Tap franchise offers upscale beer bars with a focus on craft beers, wines, and other beverages. Known for its extensive selection of premium drinks and development opportunities, it operates under a proprietary formula in the bar and restaurant industry.
Brass Tap franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a The Brass Tap franchised business is between $792,950 and $1,279,550. This includes an initial franchise fee that ranges from $43,600 to $1,279,550 depending on whether development rights for multiple Brass Tap Bars are included [p.1].
What is the initial franchise fee?
The initial franchise fee is $25,000 and it is payable in two installments of $12,500 each. The first installment is due upon signing the Franchise Agreement, and the second is due either when you sign your lease or 30 days before ground-breaking for your Brass Tap Bar, whichever occurs first [p.10, p.181].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 5% of your Brass Tap Bar's monthly Adjusted Gross Sales, due on or before the Payment Day of each month for the immediately preceding month [p.181]. The Marketing and Development Fund aims to maximize recognition of the Marks and patronage but does not guarantee proportional spending based on contributions from franchisees in any geographic area [p.32].
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?
According to the FDD, you cannot transfer ownership of your franchise except for good cause as specified by the franchisor. Good cause includes but is not limited to unspecified criteria [p.288(g)]. This means any sale or transfer would need approval from the franchisor based on these grounds.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.296], under ADA-specific grounds permitted by law [p.308], or if there is a failure to comply with lawful provisions of the franchise agreement and such failure is not cured within a reasonable time frame, typically no more than 30 days [p.305]. Additionally, in Virginia, termination must have reasonable cause as defined under the Virginia Retail Franchising Act [p.305].
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 specific minimum net worth or liquid capital requirements for franchisees to qualify. However, it does mention that adequate reserves and working capital sufficient to cover risks and contingencies for at least three months must be maintained [p.194].
Do I get an exclusive or protected territory?
Yes, you will receive a protected geographic territory in which you will operate one Brass Tap Bar. Your Protected Territory will consist of the area within a 3-mile radius from your Site, but you may face competition from other franchisees, outlets owned by the company, or other competitive brands controlled by them [p.37].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program that includes on-site assistance from trainers for a total of 5 days during Training Week. Additionally, two trainer employees from existing Brass Tap Bars are required to provide on-site training, support, and assistance for the same duration. For ongoing support, the franchisor will provide advisory assistance in various aspects of operation, advertising, merchandising, display, promotion, and public relations as deemed necessary. The franchisor may also offer additional or refresher training upon request at an additional fee [p.184].
How many franchised outlets are there, and how many have closed or been terminated?
As of December 31, 2024, there were a total of 51 Brass Tap Bars operating domestically. During the same period, a total of 4 franchise outlets closed; none was a Brass Tap Bar, with 1 of these being open for less than 12 months before closing. [p.52]
Does the franchisor share any financial performance or earnings information?
The franchisor does not share general financial performance or earnings projections [p.55]. However, if you are purchasing an existing outlet, they may provide actual records of that outlet's performance [p.55]. Additionally, the franchisor is permitted to provide financial performance information only under specific conditions, such as providing actual records of an existing outlet for sale or supplementing the information provided in Item 19 with additional details [p.51].
What am I restricted to selling, and where must I buy supplies?
You are prohibited from selling any fixtures, furniture, equipment, signs, inventory, materials, or supplies to a third party planning to open a Competitive Business at the Site following the expiration or termination of your Franchise Agreement [p.243]. You may have to buy or lease items from the franchisor or a limited group of suppliers designated by them, which might be more expensive than similar items you could purchase on your own [p.3].