Barrel House Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$540,000 - $1,215,000
Franchise Fee
$35,000
Total US Locations
7
Business Summary
Barrel House operates restaurants that specialize in hot and cold sandwiches, burgers, pizzas, quesadillas, tacos, salads, wraps, and other pub-style food. These restaurants also serve both alcoholic and non-alcoholic beverages to customers.
Corporate History
Barrel House Enterprises LLC was formed in August 2020 and began offering Barrel House franchises in April 2021. The underlying "Barrel House" concept was created by an affiliate, The Barrel House, L.L.C. (TBH), which started operating Barrel House restaurants in July 2011. TBH owns the brand's trademarks and licenses them to Barrel House Enterprises LLC for use in the franchise system. TBH and its affiliated entities currently operate six Barrel House restaurants.
Financial Overview
Investment Range
$540,000 - $1,215,000
Franchise Fee (Low)
$35,000
Franchise Fee (High)
$40,000
Royalty %
5%
Marketing %
1%
Equipment Costs (Low)
$355,000
Equipment Costs (High)
$870,000
Working Capital
$67,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
The auditors for Barrel House have raised concerns about its ability to continue operating as a going concern because the company has an accumulated deficit and its revenue is currently not enough to cover operations. Barrel House's future revenue depends on selling more franchises, and there is no guarantee that enough agreements will be secured. The company's sole member has committed to providing financial support if needed.
Financing Details
Barrel House does not offer any direct or indirect financing to its franchisees. This means franchisees will need to secure their own funding and Barrel House will not guarantee any loans, leases, or other obligations.
Performance Metrics
Total US Locations
7
Franchised Units
1
Corporate Units
6
Avg Square Footage
4,250
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Barrel House has no litigation to report.
Bankruptcy History
Barrel House has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their agreement, Barrel House franchisees must provide advance written notice between 60 to 180 days before the term ends, comply with all terms of their current Franchise Agreement, and satisfactorily complete any new or refresher training programs. They must also sign a new franchise agreement (which may have different terms), remodel their restaurant to meet current Barrel House standards, prove they will retain the restaurant premises, pay a renewal fee equal to 20% of the then-current initial franchise fee, and sign a general release of claims.
Training & Support Program
Franchisor Assistance
Barrel House provides pre-opening support including consulting for site selection, prototype drawings, initial training for the Operating Principal and two managers, and access to the confidential Operations Manual and Computer System, along with lists of approved suppliers. Ongoing assistance includes 3 to 5 days of on-site help during opening, advisory services on operations, products, marketing, and administration, and updates to the Operations Manual. Barrel House also manages a System Marketing Fund, may provide local media planning, approves advertising materials, and designates required computer systems and software, charging a Technology Fee for support. Franchisees are also required to attend supplemental training and mandatory conventions.
Initial Training Hours
136
Training Location
Davenport, IA
Ongoing Support
After opening, Barrel House franchisees receive advisory services on various operational issues, including products, purchasing, marketing, and administrative procedures. Barrel House also provides updated materials for the Operations Manual and manages the System Marketing Fund. Franchisees may be required to attend supplemental and refresher training programs for up to 7 days each calendar year and mandatory franchise conventions or meetings.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Hands-On
Territory Type
Protected
Territory Size Requirements
Barrel House defines its protected territories based on the population of the market area. If a Barrel House restaurant is in a market area with a population under 400,000, the protected territory is a 3-mile radius around the restaurant. If the market area population is 400,000 or more, the protected territory is a 1-mile radius. The 'Market Area' itself is a geographical area within a metropolitan area, with population determined by the most recent U.S. census.
Staffing Notes
Barrel House franchisees are responsible for hiring all their restaurant employees and managing all aspects of their employment, including training, scheduling, and compensation. Franchisees must always maintain a trained staff to meet Barrel House standards and ensure all employees have required licenses. The restaurant must always be supervised on-site by an approved Operating Principal or a certified general manager who has completed initial training. The Operations Manual provides job descriptions for various roles, including general manager, kitchen manager, assistant managers, cooks, bartenders, servers, food runners, and dishwashers.