BrewDog
BrewDog offers craft beer and pub fare in brewpubs, known for innovative beers and a casual atmosphere. Part of the rapidly growing craft brewery and restaurant franchise sector.
About BrewDog
BrewDog is a multinational brewery and pub chain based in Ellon, Aberdeenshire, Scotland. With production of over 100 million litres, BrewDog is the seventh-largest beer brand in Britain, and claims to be the "#1 Craft Brewer in Europe". As of 2023, the brand was available in 57 countries, with beers sold in over 129 bars and widely distributed internationally.
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BrewDog franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a new BrewDog BrewPub ranges from $3,385,500 to $5,750,500. This includes a mandatory payment of $60,000 to $65,000 to the franchisor [p.1].
What is the initial franchise fee?
The initial franchise fee is $50,000 and it is due and payable immediately upon opening your BrewDog BrewPub after all pre-opening obligations have been fulfilled by the company. [p.151, p.228]
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 5% of Total Monthly Receipts, payable monthly [p.109]. The Marketing Fund supports advertising and marketing efforts to benefit all franchisees, but there's no specified advertising fee from the prospective franchisee; instead, contributions go into a fund managed by the company for brand promotion [p.37-38].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is 10 years [p.133]. You have the right to renew the franchise for successive 10-year terms through written agreement with the franchisor [p.51].
Can I sell or transfer my franchise, and what does that require?
The franchisor can refuse a transfer of ownership except for good cause [p.6]. Good cause includes establishing continuity and cooperation among BrewDog BrewPubs in the market area and protecting the BrewDog® brand [p.131]. Additionally, any transfer must be approved by the franchisor, who may condition approval on the simultaneous transfer of other rights, interests, obligations, assets, and/or ownership interests to ensure you (or your affiliate) continue to own and operate all BrewDog BrewPubs in the market area [p.131].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.203] or under any grounds permitted by law [p.207]. Additionally, the franchisor may change the business model and require additional investments or changes that could harm the franchise business without needing your consent [p.4].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The provided FDD excerpts do not detail specific financial requirements such as net worth or liquid capital needed to qualify for the franchise.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory [p.196, p.47, p.50]. However, during the term of the Franchise Agreement and while in full compliance with it, the company will not establish another BrewDog BrewPub within your designated site or development territory [p.47, p.50]. This exclusivity does not depend on achieving specific sales volumes or market penetration [p.47, p.51].
What training and ongoing support does the franchisor provide?
The franchisor provides initial orientation and training programs for your Principal Owner, General Manager, Head Brewer, and Kitchen Manager before opening the BrewPub. This includes both in-person and electronic training methods [p.43]. For the first two BrewPubs, the franchisor also sends a training team to provide on-site support during pre-opening and immediate post-opening periods [p.107, p.45]. Ongoing refresher training and certification courses may be required periodically at locations designated by the franchisor, with fees charged for these services [p.107].
How many franchised outlets are there, and how many have closed or been terminated?
The FDD does not specify the exact number of franchised outlets currently in operation or those that have closed or been terminated. However, it mentions that there were no franchisees who left the System last year [p.69]. Additionally, Exhibit H lists the current addresses and contact information for franchisees as of December 31, 2023, but does not provide specific numbers regarding closures or terminations [p.69].
Does the franchisor share any financial performance or earnings information?
The franchisor does not make any financial performance representations other than the preceding one. However, if you are purchasing an existing outlet, they may provide actual records of that outlet's performance [p.66]. Additionally, written substantiation of all financial performance information can be provided upon reasonable request [p.66].
What am I restricted to selling, and where must I buy supplies?
You must operate the BrewPub according to System Standards, which regulate the types of products and services you can offer. You are required to purchase or lease Operating Assets and other products and services only from suppliers designated or approved by the franchisor, which may include the franchisor itself or its affiliates [p.26]. This isn't specified in the excerpts regarding where you must buy supplies beyond these restrictions.