Risk Score
Pending analysis
Investment Range
$3,363,500 - $5,730,500
Franchise Fee
$25,000
Min Cash Required
$50,000
Total US Locations
8
Business Summary
BrewDog BrewPubs operate as brewpubs and limited breweries under the 'BREWDOG®' name, offering proprietary craft beer brewed on premises, along with a menu of pizza, burgers, sandwiches, and other food and beverage items.
Corporate History
BrewDog Franchising LLC was established in Ohio in 2019. Its parent company, BrewDog USA Inc., is owned by BrewDog PLC, a UK-based company that began operating BrewDog businesses internationally in 2010 and first granted international franchises in Sweden in 2013. BrewDog Franchising LLC itself started offering franchises and development rights for BrewDog BrewPubs in the United States in October 2020. While BrewDog Franchising LLC has not operated its own BrewDog BrewPubs, its affiliates have owned and operated them since February 2017.
Financial Overview
Investment Range
$3,363,500 - $5,730,500
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$50,000
Minimum Cash Required
$50,000
Royalty %
5%
Equipment Costs (Low)
$2,900,000
Equipment Costs (High)
$4,750,000
Working Capital
$125,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
The independent auditor for BrewDog has expressed substantial doubt about the company's ability to continue as a going concern. BrewDog has experienced recurring losses from operations and has a net capital deficiency, raising concerns about its financial capacity to provide services and support to franchisees. BrewDog's ability to continue operations depends on its management's plan to grow profitable operations and secure additional funding.
Financing Details
BrewDog does not offer any direct or indirect financing to its franchisees. BrewDog also does not guarantee any notes, leases, or other obligations for its franchisees.
Performance Metrics
Total US Locations
8
Franchised Units
0
Corporate Units
8
Avg Square Footage
9,250
Franchising Since
2020
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
BrewDog has no litigation history to report. According to Item 3, no litigation is required to be disclosed for BrewDog.
Bankruptcy History
BrewDog has no bankruptcy history to report. According to Item 4, no bankruptcy is required to be disclosed for BrewDog.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise, BrewDog franchisees must have substantially complied with all contractual obligations and operated their BrewPub in accordance with System Standards and all applicable laws. They are required to remodel or upgrade the BrewPub to meet current standards, sign BrewDog's then-current franchise agreement and any required releases (where allowed by state law), and pay a successor franchise fee. The terms of the new franchise agreement, including fees, may differ materially from the original agreement.
Training & Support Program
Franchisor Assistance
BrewDog provides extensive assistance to its franchisees. Before opening, BrewDog helps with reviewing potential BrewPub sites and proposed leases. It provides construction guidelines, design standards, and a list of approved suppliers for equipment and products. Initial training is provided for four key personnel (Principal Owner, General Manager, Head Brewer, and Kitchen Manager) at no additional fee, though franchisees cover their own expenses. BrewDog also sends a Training Team for 10 days to assist with the grand opening of the first two BrewPubs. Franchisees receive access to the Operations Manual. Ongoing support includes advice on operations, purchasing, training, and marketing, as well as access to an Intranet and System Website. BrewDog periodically inspects BrewPub operations and beer quality, offers refresher training courses, and reviews franchisee advertising materials.
Initial Training Hours
80
Training Location
Columbus, OH
Ongoing Support
BrewDog provides ongoing advice and recommendations on BrewPub operations, including standards, purchasing, training methods, advertising, and marketing. Franchisees have access to the Operations Manual and potentially an Intranet for internal communication. BrewDog may offer additional guidance, assistance, or refresher training courses, which may incur fees and expenses for the franchisee. BrewDog also maintains a System Website and social media accounts to promote the brand and inspects and monitors BrewPub operations and the quality of beer brewed on-site.
Franchise Requirements
Ideal Candidate Profile
BrewDog seeks franchisees who will form a business entity (like a corporation or LLC) that will exclusively own and operate the BrewPub. The ideal candidate will either be a Principal Owner or hire a General Manager who has at least five years of food and beverage operations experience. This individual must be approved by BrewDog and is required to dedicate substantially all of their business time to the on-premises management and operation of the BrewPub, while also ensuring compliance with all state and federal alcohol licenses.
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
Exclusive
Territory Size Requirements
BrewDog territories are expected to encompass an approximate one-mile radius from the BrewPub premises. The actual size may vary based on the population density of the specific area where the BrewPub is located.
Staffing Notes
BrewDog BrewPubs must maintain adequate staffing levels to operate in compliance with System Standards, which cover personnel appearance and customer service. Franchisees are solely responsible for all employment practices, including hiring, training, and managing their employees. Key roles requiring initial training include the Principal Owner (or General Manager), Head Brewer, and Kitchen Manager. For multi-unit developers, BrewDog also outlines an 'Above Bar Structure Matrix' detailing executive and operational management roles, such as Operations Manager, Marketing Manager, HR Business Partner, and Trainer, which scale based on the number of BrewPubs owned.