Sedona Taphouse
Sedona Taphouse offers upscale sit-down restaurants focusing on craft beer and proprietary recipes. Known for its extensive tap list and multi-unit franchise opportunities, it operates in the full-service restaurant sector.
Sedona 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 Sedona Taphouse restaurant franchise ranges from $1,652,000 to $2,510,000. If you sign a multi-unit agreement covering at least three units, your total initial investment will be between $1,692,000 and $2,550,000 plus an additional $10,000 for each unit after the first three [p.1, p.180].
What is the initial franchise fee?
The initial franchise fee for a single Sedona Taphouse restaurant franchise is $35,000, while if you already own at least one Sedona Taphouse restaurant, the initial fee is $20,000. This fee is not refundable under any circumstances and is paid in one lump sum when signing the franchise agreement. [p.9, p.17]
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 4% of gross sales [p.114], while there is also a requirement to pay marketing fees equal to 1.5% of gross sales into a marketing and support fund [p.26].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The provided FDD excerpts do not mention the duration of the initial franchise agreement or the specifics of its renewal process beyond indicating that a renewal fee applies if renewed [p.115].
Can I sell or transfer my franchise, and what does that require?
The Franchise Agreement allows for restrictions on transferring ownership of the franchise without the written approval of the Franchisor [p.157]. Additionally, a good cause standard applies to such transfers [p.193(g)]. This isn't specified in the excerpts.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law, according to [p.196]. Additionally, the franchisor may terminate the agreement for failure to comply with lawful provisions of the franchise agreement and not curing such failure after being given notice and a reasonable opportunity to cure, which cannot exceed 30 days.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The provided FDD does not detail specific financial requirements such as net worth or liquid capital for franchisee qualifications.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory [p.33]. You may face competition from other franchisees, outlets owned by the company, or other channels of distribution or competitive brands that the company controls [p.32].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training programs that must be successfully completed by the manager (Operating Manager) [p.103]. Additionally, the franchisor offers other assistance and support as deemed necessary to help launch the Sedona Taphouse restaurant [p.25]. This support includes ongoing training requirements for the Operating Manager from time to time [p.103].
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 may provide financial performance information for existing outlets if requested and if there is a reasonable basis for this information. 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.42].
What am I restricted to selling, and where must I buy supplies?
You are not specifically restricted to selling any particular items, but there may be limitations on what you can sell as outlined in Item 16 [p.22]. Regarding supply purchases, initially, you may have to buy or lease certain items from the franchisor or a limited group of suppliers they designate, which might be more expensive than other options [p.3]. Additionally, if purchasing or distribution cooperatives are established for your region, you must participate in them [p.102].