Mr Brews Taphouse
Mr Brews Taphouse offers craft beer and high-quality hamburgers in a casual family-friendly atmosphere. Known for a wide selection of beers and burgers, this franchise is part of the restaurant and bar industry.
Mr Brews Taphouse franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Mr Brews Taphouse® Restaurant franchise ranges from $501,500 to $962,000 [p.1]. This includes a mandatory payment of $45,000 to the franchisor or affiliate and additional costs for training, leasehold improvements, equipment, inventory, and other expenses [p.87, p.26, p.18, p.22].
What is the initial franchise fee?
The initial franchise fee is generally $45,000 but can be modified by the Company on a case-by-case basis [p.58, p.70]. This isn't specified in the excerpts for all scenarios, as there are variations depending on agreements and circumstances [p.15].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 5% of the Restaurant's Revenues for the previous week, with a minimum of $575 per week [p.83]. Additionally, there is an obligation to spend at least $2,500 annually on approved Local Advertising, and any shortfall must be deposited with Mr Brews and spent by them in the franchisee’s market area [p.24].
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 can transfer your franchise, but the franchisor has the right to refuse such a transfer for good cause [p.5]. When transferring your franchise, you must sign a joint and mutual release of claims, and this process is subject to California laws that void any waiver of rights under relevant statutes [p.40]. This isn't specified in the excerpts.
On what grounds can the franchisor terminate the agreement?
According to [p.5], a franchisor can terminate the franchise agreement prior to its expiration for good cause, which includes the failure of the franchisee to comply with any lawful provision of the franchise agreement and to cure such failure after being given written notice and a reasonable opportunity (no more than 30 days) to do so.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The provided FDD excerpts discuss financial obligations and requirements after becoming a franchisee or area developer, but they do not specify the exact net worth or liquid capital needed to qualify as a prospective franchisee or area developer.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You operate within a Designated Area that is protected from new Mr Brews Restaurants but not from existing ones or other competitive brands [p.26]. Additionally, the FDD indicates limited exclusivity for certain types of restaurants like Taphouse® within your Designated Area and no such exclusivity outside it [p.81].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training under the supervision of Mark Leach and instructors with relevant experience [p.26]. Additional training is offered if needed for new Management Staff members, conducted at designated locations with associated fees and expenses to be paid by the franchisee [p.26, p.105].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor, Mr Brews, does not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets [p.36]. However, if you are purchasing an existing outlet, Mr Brews may provide actual records of that outlet [p.36]. This isn't specified in the excerpts for new franchises.
What am I restricted to selling, and where must I buy supplies?
You are required to purchase or lease certain Foods, Beverages, and Products from Approved Suppliers as specified by Mr Brews [p.96]. You may have to buy or lease items from the franchisor or a limited group of suppliers they designate, which might be more expensive than other options [p.3]. For selling, you must operate your Restaurant at a single Franchised Location within a protected area ('Designated Area'), and you are not restricted from soliciting or accepting orders outside this area but need to obtain approval for doing so [p.26].