JL Beers
JL Beers Franchising offers high-quality hamburgers, chicken sandwiches, and craft cocktails in a fast-casual setting. Known for its variety of fresh foods and beers, it operates in the casual dining restaurant industry.
JL Beers 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 varies depending on whether you lease or acquire the land and building. For leasing, the range is from $1,223,000 to $1,883,000, while for acquiring the land and building, it ranges from $1,835,000 to $3,308,000 [p.1]. This total includes a fixed amount of $54,200 - $55,000 that must be paid to the franchisor or its affiliate [p.14].
What is the initial franchise fee?
The initial franchise fee for a single Restaurant franchise is $50,000. This fee includes a Restaurant opening promotional package, and it is paid when you sign the Franchise Agreement. [p.8]
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 4% of net sales, billed and collected monthly in arrears from all franchisees not under common ownership. The production fund revenue (advertising fees) is .5% of net sales, also billed and collected monthly in arrears [p.46].
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?
This isn't specified in the excerpts.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD does mention capital requirements but doesn't detail specific amounts of net worth or liquid capital needed [p.72].
Do I get an exclusive or protected territory?
You do not receive an exclusive territory but may have a 'Protected Territory' depending on the population of your Market Area. This Protected Territory does not include any 'Captive Market Locations,' such as airports, and you face potential competition from other JL Beers® restaurants or company-owned locations [p.25, p.67].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program that includes instruction on Restaurant operations, equipment use, customer service, marketing, and cost control. The initial training for the Operating Principal and general manager lasts up to 19 days, while for the bar supervisor and kitchen supervisor, it is up to 14 days [p.21, p.72]. Additionally, the franchisor offers opening assistance with a representative evaluating the restaurant readiness before opening and providing support during the first two weeks of operation [p.73]. There is also follow-up onsite support within the first month of operation for analysis and further guidance [p.73].
How many franchised outlets are there, and how many have closed or been terminated?
As of December 31, 2024 and 2023, the company managed a total of 10 franchisees, with 7 being company-owned restaurants through related parties. No franchises were closed in 2024 or 2023, and no new franchises were awarded during these years [p.44].
Does the franchisor share any financial performance or earnings information?
The franchisor can provide financial performance information if there is a reasonable basis for it and if it includes actual records of an existing outlet you are considering buying, or if they supplement the information provided in Item 19. However, the franchisor does not make any representations about future financial performance or past financial performance of company-owned or franchised outlets, nor do they authorize their employees to make such representations [p.30, p.32].
What am I restricted to selling, and where must I buy supplies?
You are required to sell only the Products and services that the franchisor has approved [p.27]. You must purchase certain supplies and other items from the franchisor, an affiliate, or a source designated by them [p.16]. Additionally, you can only purchase specific products from suppliers identified on the Approved Suppliers List, such as branded paper products exclusively from a specified supplier [p.16].