Taffer's Tavern logo

Taffer's Tavern Franchise

Audited Financials
Food and BeverageEst. 2019Las Vegas, NV
www.tafferstavern.com

Risk Score

Pending analysis

Investment Range

$807,000 - $1,341,000

Franchise Fee

$50,000

Total US Locations

3

Business Summary

Taffer's Tavern operates a full-service, casual dining restaurant offering a wide variety of lunch and dinner entrees, appetizers, desserts, side dishes, beverages, and a full bar. Taffer's Tavern restaurants utilize a unique ventless/hoodless high-efficiency kitchen and operate using the franchisor's proprietary recipes, formulae, techniques, trade dress, trademarks, and logos. With prior written approval and after three months of operation, Taffer's Tavern may also offer catering and delivery services. The restaurants are typically located in high-traffic areas like strip malls, shopping malls, lifestyle centers, and freestanding locations, requiring approximately 5,000 square feet of space.

Corporate History

Premier Taverns LLC was formed as a Nevada limited liability company on June 13, 2019. Taffer's Tavern began offering franchises on July 17, 2019. The franchisor has not operated in any other line of business and does not own or operate a restaurant of the type being franchised. Its affiliate, Jon Taffer, LLC, owns the Taffer's Tavern trademarks and licenses them to Premier Taverns LLC for sublicensing to franchisees.

Financial Overview

Investment Range

$807,000 - $1,341,000

Franchise Fee (Low)

$50,000

Franchise Fee (High)

$50,000

Royalty %

6%

Equipment Costs (Low)

$586,000

Equipment Costs (High)

$942,000

Working Capital

$75,000

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

The financial condition of Taffer's Tavern raises concerns about its ability to provide services and support to franchisees. The company has experienced substantial losses, reporting net losses of $320,733, $498,748, and $602,634 for the years ending May 31, 2024, 2023, and 2022, respectively. Additionally, Taffer's Tavern has a growing member's deficit, reaching $1,754,990 as of May 31, 2024. Based on its current rate of cash usage, the company anticipates needing additional capital by the end of 2025. Management believes it can continue as a going concern by opening more locations, selling additional franchises, and through adequate funding from its owner and related parties.

Financing Details

Taffer's Tavern does not offer any direct or indirect financing to franchisees. The company also does not guarantee any franchisee notes, leases, or other obligations. Due to its financial condition, regulatory bodies in Illinois, Maryland, and Virginia require Taffer's Tavern to defer collection of initial franchise fees and development fees until certain pre-opening obligations are met or the first franchise unit opens.

Performance Metrics

Total US Locations

3

Franchised Units

3

Corporate Units

0

Avg Square Footage

5,000

Franchising Since

2019

Agreement Terms

Initial Term

10 years

Renewal Term

10 years

Renewal Conditions

Taffer's Tavern franchisees must provide notice of their wish to renew between six and nine months before the initial term ends. To be eligible, franchisees must be current on all payments and not be in default of their Franchise Agreement. If required by Taffer's Tavern, franchisees must renovate or upgrade their restaurant to meet current brand standards. They must also sign a general release of claims against Taffer's Tavern, sign a new successor franchise agreement (which may have different terms, though territory boundaries and fees won't be higher than for similarly situated franchisees), and pay a $5,000 successor agreement fee.

Training & Support Program

Franchisor Assistance

Taffer's Tavern provides comprehensive support to its franchisees. Before opening, the franchisor offers written materials for site and market analysis, and upon request, provides on-site location evaluations (at the franchisee's cost). Franchisees receive prototype design plans, the Confidential Operations Manual, a list of approved suppliers, and mandatory HQ Initial Training for at least three key employees (included in the initial franchise fee, but travel and living expenses are the franchisee's responsibility). Taffer's Tavern also reviews the grand opening advertising campaign and provides up to 17 days of free on-site pre-opening and post-opening assistance and training by one representative. For multi-unit operators, pre-opening assistance may be optional and at cost for subsequent units. Ongoing support includes periodic inspections and evaluations of the restaurant, review of annual advertising plans, and advice and written updates on management and operations techniques, new equipment, food products, recipes, and preparation. Taffer's Tavern may conduct mandatory training programs and seminars for franchisees and their personnel, as well as annual franchisee meetings, for which the franchisee pays a per-person fee and expenses. Additional on-site training is available upon request or if deemed necessary, at the franchisee's expense. Taffer's Tavern also administers the Worldwide Creative Marketing Fund and has the right to determine the maximum prices for goods, products, and services sold by the restaurant. Taffer's Tavern does not assist with employee hiring or permit/license acquisition.

Initial Training Hours

80

Training Location

Las Vegas, Nevada

Ongoing Support

After opening, Taffer's Tavern provides continuing assistance to its franchisees, including periodic on-site visits to inspect the restaurant and evaluate its products and services. Franchisees must submit an annual advertising plan for review. Taffer's Tavern offers ongoing advice and written materials, including updates to the Manual, covering management techniques, new equipment, food products, recipes, and preparation. Taffer's Tavern may conduct mandatory training programs and seminars for franchisees and their personnel, as well as annual franchisee meetings, for which the franchisee pays a per-person fee and expenses. Additional on-site training can be provided upon request or if deemed necessary, at the franchisee's expense. Taffer's Tavern also administers the Worldwide Creative Marketing Fund and has the right to determine the maximum prices for goods, products, and services sold by the restaurant.

Franchise Requirements

Ideal Candidate Profile

Taffer's Tavern seeks franchisees who meet specific educational, managerial, and business standards, demonstrating good moral character, business reputation, and credit rating. Ideal candidates should possess an aptitude and ability to conduct the restaurant business, potentially evidenced by prior related business experience. They must also have sufficient financial resources and capital to operate the business. The Designated Controlling Principal is required to be a minimum 10% equity owner and responsible for the general oversight and management of the restaurant. General Managers and Managers are expected to devote their full time and reasonable efforts to day-to-day operations and must meet educational and business experience criteria. A Principal may serve as a General Manager or Manager if they have at least three years of previous restaurant management or ownership experience.

Industry Experience Required

No

Management Experience Required

Yes

Sales Experience Required

No

Technical Skills Required

No

Min Years Experience

3

Operational Details

Location Type

retail

Owner Participation

supervisory

Territory Type

limited

Territory Size Requirements

Taffer's Tavern defines territory size based on whether the restaurant is in an urban or suburban setting. For urban locations, franchisees are granted a minimum radius of 0.25 miles, while suburban locations receive a minimum radius of two miles. The exact boundaries are determined after the restaurant location is approved. Taffer's Tavern reserves the right to adjust territory boundaries or provide a two-mile buffer between areas to prevent overlaps.

Staffing Notes

Taffer's Tavern requires franchisees to consistently employ a minimum of one General Manager and two Managers who will devote their full time and reasonable efforts to the day-to-day operations of the restaurant. These General Managers and Managers must meet Taffer's Tavern's educational and business criteria and complete all required training. If a Principal acts as a General Manager or Manager, they must have at least three years of previous restaurant management or ownership experience. The Designated Controlling Principal, while responsible for general oversight, cannot serve as a General Manager or Manager. All General Managers, Managers, and other designated employees must maintain ServSafe and TIPS certifications. Franchisees must also employ additional personnel as needed to operate and manage the restaurant.