Risk Score
Pending analysis
Investment Range
$1,223,000 - $3,308,000
Franchise Fee
$40,000
Min Cash Required
$300,000
Total US Locations
10
Business Summary
JL Beers Franchising, Inc. offers individual unit franchises to develop and operate JL Beers® restaurants. These establishments serve a variety of high-quality hamburgers, chicken sandwiches, fresh-cut fries and chips, pretzels, fresh-ground peanut butter, dips, craft cocktails, and a large selection of draught, canned, and bottled beers. JL Beers aims to provide quick service in a fast-casual atmosphere, catering primarily to individuals aged 21 to 60 who enjoy hamburgers and beer, in an open-kitchen setting.
Corporate History
JL Beers Franchising, Inc. is a North Dakota corporation formed on January 23, 2013, with the purpose of granting franchises for JL Beers® restaurants. The company began offering franchises in April 2013. The original JL Beers® restaurant concept was created in 2009 by its predecessor, JL Beers, Inc., which opened the first restaurant in November 2009 in Fargo, North Dakota. JL Beers Franchising, Inc. acquired the trademarks and other intangible assets related to the JL Beers® system from its predecessor in January 2013. An affiliate, JL Beers of America Inc. (JLBA), was formed in 2011 to handle administrative duties for company-owned restaurants and other related businesses. As of the FDD date, the predecessor and related companies operate 7 JL Beers® restaurants in North Dakota and South Dakota.
Financial Overview
Investment Range
$1,223,000 - $3,308,000
Franchise Fee (Low)
$40,000
Franchise Fee (High)
$50,000
Minimum Cash Required
$300,000
Royalty %
4%
Marketing %
0.5%
Equipment Costs (Low)
$800,000
Equipment Costs (High)
$1,250,000
Working Capital
$300,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
JL Beers Franchising, Inc.'s audited financial statements for 2024, 2023, and 2022 are attached as Exhibit A, accompanied by an unqualified opinion from the independent auditor. This indicates that the financial statements present fairly the company's financial position in all material respects. The company demonstrates a healthy financial position, with current assets significantly exceeding current liabilities. Cash at the end of 2024 was $782,979, and retained earnings were positive and growing. While the auditor's report notes that management is required to evaluate conditions that might raise substantial doubt about the company's ability to continue as a going concern, the audit report itself did not include a going concern qualification.
Financing Details
JL Beers Franchising, Inc. does not offer any direct or indirect financing to its franchisees. The franchisor also does not guarantee any franchisee's notes, leases, or other obligations.
Performance Metrics
Total US Locations
10
Franchised Units
3
Corporate Units
7
Avg Square Footage
3,500
Franchising Since
2013
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
JL Beers Franchising, Inc. has no litigation history to report, as no litigation is required to be disclosed in Item 3 of its Franchise Disclosure Document.
Bankruptcy History
JL Beers Franchising, Inc. has no bankruptcy history to report, as no bankruptcy information is required to be disclosed in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
15 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, JL Beers Franchising, Inc. franchisees must provide written notice 180 to 360 days before the agreement expires. They must be in full compliance with all material provisions of their current franchise agreement and other agreements, and all monetary obligations to the franchisor and its affiliates must be paid. Franchisees need to demonstrate their right to maintain possession of the restaurant premises and, at their own expense, remodel, modernize, and redecorate the restaurant to meet current brand standards. Alternatively, they must secure a new approved location within the Protected Territory and make all necessary improvements. The Operating Principal and a Principal Owner must successfully complete any new or refresher training programs required by JL Beers Franchising, Inc. Additionally, franchisees must pay a renewal fee equal to the lesser of 20% of the then-current initial franchise fee or $15,000, and sign the franchisor's then-current standard Franchise Agreement, which may contain materially different terms. Finally, the franchisee and each Principal Owner must sign a general release of all claims against the franchisor and its affiliates.
Training & Support Program
Franchisor Assistance
JL Beers Franchising, Inc. provides comprehensive assistance to its franchisees, starting with pre-opening support. This includes reasonable consulting services for site evaluation and selection, provision of prototype drawings and specifications for the restaurant, initial training for the Operating Principal, general manager, bar supervisor, and kitchen supervisor, and access to the confidential Operations Manual. Before opening, the franchisor also provides up to 3 days of on-site assistance to assess readiness and a restaurant opening promotional package. Ongoing assistance includes making a field consultant available for up to 14 days to help with the opening and initial operations, including management training. Additional on-site support for up to 3 days is provided during the first month to analyze restaurant operations. JL Beers Franchising, Inc. offers advisory services on various operational issues, such as product selection, purchasing, marketing, sales promotion programs, and general administrative procedures, and periodically updates the Operations Manual. The franchisor manages a Production Fund for system-wide marketing and promotion, to which franchisees contribute 0.50% of Net Sales (up to 2%). Franchisees must also participate in the designated gift card program.
Initial Training Hours
154
Training Location
Fargo, North Dakota
Ongoing Support
After opening, JL Beers Franchising, Inc. franchisees receive ongoing assistance through various channels. A field consultant is available for up to 14 days to assist with opening and initial operations, including management-level training. Additional on-site support for up to 3 days is provided during the first month of operation to analyze the restaurant's performance. The franchisor offers advisory services related to restaurant operations, including product selection, purchasing, marketing assistance, sales promotion programs, and general administrative and operating procedures. Franchisees also receive periodic updates and revisions for the Operations Manual. JL Beers Franchising, Inc. operates a Production Fund, funded by a weekly production fee (currently 0.50% of Net Sales, up to 2%), for general promotion of the brand and system, including website development, social media, market analytics, and advertising campaigns. Franchisees must participate in the designated gift card program, incurring a monthly fee. Additionally, new Operating Principals, general managers, bar supervisors, and kitchen supervisors must complete a manager certification program, which may have an associated fee. JL Beers Franchising, Inc. may also require franchisees and key personnel to attend supplemental and refresher training programs for up to 7 days annually, for which a reasonable fee may be charged. Further operating assistance may be provided for a fee, either upon franchisee request or if required by the franchisor, and participation in a mystery shopper program may be required with reimbursed expenses.
Franchise Requirements
Ideal Candidate Profile
JL Beers Franchising, Inc. seeks an Operating Principal who is also a Principal Owner, approved by the franchisor, and who successfully completes the required training program. This individual must commit to full-time, day-to-day restaurant operations and cannot engage in other businesses requiring significant management responsibility that would conflict with their franchise obligations. The restaurant must always be under the direct, on-site supervision of the Operating Principal or a general manager. While not explicitly required, JL Beers Franchising, Inc. recommends that the Operating Principal have food service experience. For those interested in developing multiple restaurants, candidates must meet specific financial standards, including having a minimum of $300,000 in cash.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
full-time
Territory Type
protected
Territory Size Requirements
JL Beers Franchising, Inc. defines its Protected Territories based on the population of the Market Area where the restaurant is located. For Market Areas with a population of less than 50,000, the Protected Territory is a 3-mile radius around the restaurant. For Market Areas with a population between 50,000 and 250,000, it is a 2-mile radius. In Market Areas with a population greater than 250,000, the Protected Territory is a 1-mile radius around the restaurant location. These territories do not include 'Captive Market Locations' such as airports or other locations without direct street access.
Staffing Notes
JL Beers Franchising, Inc. requires each restaurant to have an Operating Principal, general manager, bar supervisor, and kitchen supervisor, all of whom must complete the initial training program. The restaurant must always be under the direct, on-site supervision of either the Operating Principal or a general manager. Franchisees must maintain a staff of trained employees sufficient to operate the restaurant according to franchisor standards and ensure all employees hold necessary licenses and certifications.