VooDoo Brewing
Voodoo Brewing Co. offers restaurants featuring craft beers and pub fare in a casual bar setting. Known for its unique brews and lively atmosphere, this franchise joins the growing craft brewery and bar industry.
VooDoo Brewing franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a single Voodoo Brewing Co. under a franchise agreement ranges from $481,500 to $1,625,000. For a multi-unit development agreement covering one restaurant, the range is from $631,500 to $2,075,000. [p.1, p.3]
What is the initial franchise fee?
The initial franchise fee depends on the specific franchise offering selected. For a single unit, it is $75,000. If supplemented with certain multi-franchise addendums, the fee can be $150,000 or $200,000 [p.20]. This isn't specified in the excerpts for the First Development Restaurant option.
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is a continuing weekly payment equal to 6% of the franchisee's weekly Gross Sales [p.128]. For advertising, all marketing materials used by the franchisee must be pre-approved by the franchisor, and the franchisee may use approved templates at their own expense [p.35]. This isn't specified in the excerpts for exact advertising fees.
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is not specified in the excerpts. However, you have the option to renew the franchise for two additional five-year terms (the 'Renewal Term'), subject to certain conditions [p.156].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you cannot freely transfer ownership of your franchise; it requires approval from the franchisor for any transfer, except for good cause. Good cause includes but is not limited to specific criteria outlined by the franchisor [p.255]. 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 [p.258]. Additionally, under Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor to cancel a franchise without reasonable cause [p.260].
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 requirements for your net worth or liquid capital to qualify as a franchisee. However, it does emphasize maintaining sufficient working capital [p.139] and submitting accurate financial statements on a regular basis [p.150].
Do I get an exclusive or protected territory?
You do not receive an exclusive territory, but you are protected from competition by other Voodoo Brewing Co. Restaurants within your designated territory during the term of the Franchise Agreement, provided you comply with it and do not default on your obligations [p.41].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training for new franchisees, including the Managing Owner or a designated manager plus two additional persons (such as a culinary manager or head chef), at no additional fee. This training takes place over approximately one week before the opening of the restaurant and is provided at a designated location. For conversion business owners, the training is customized based on prior experience. Ongoing support details are not specified in these excerpts. [p.37, p.32]
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts. The FDD provides information about company-owned outlets but does not give details on the number of franchised outlets currently open or those that have closed or been terminated.
Does the franchisor share any financial performance or earnings information?
The franchisor does not make any financial performance representations other than the one provided in Item 19. However, they may provide actual records of an existing outlet if you are purchasing one. [p.68, p.54]
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering and serving the Approved Products and Services as specified by the franchisor. You must exclusively purchase System Supplies from the franchisor or their designated suppliers [p.136]. Due to tied-house laws, while you may be restricted from purchasing Voodoo Brewing Co. beer directly from the franchisor or its affiliates, you can buy it from designated third-party distributors [p.26].