Risk Score
Pending analysis
Investment Range
$792,950 - $1,279,550
Total US Locations
53
Business Summary
The Brass Tap Franchisor, LLC franchises businesses that operate "The Brass Tap®" bars, which are upscale beer bars. These establishments offer a wide selection of craft beers on tap, a large variety of imported, domestic, and local craft beers, a large selection of fine wines, and various other beverage and food options. In locations where legally permitted, The Brass Tap® bars also sell cigars and bottled beers for customers to carry out from an attached package store.
Corporate History
The Brass Tap® concept was initially developed by The Brass Tap Franchising Co, LLC, which was formed in June 2011 and began offering Brass Tap franchises in August 2011. In April 2012, Brass Tap Franchisor, LLC was formed in Delaware, and in June 2012, it took over all franchising rights for The Brass Tap® bars. Brass Tap Franchisor, LLC's parent company is Beef's Brass Tap, LLC, which is owned by FSC Franchise Co, LLC (FSC). FSC has been franchising Beef 'O' Brady's® Family Sports Pubs since 2007, with its predecessor doing so since 1998. FSC and Brass Tap Franchisor, LLC are ultimately controlled by CapitalSpring, a private investment firm, which acquired ownership in June 2017. As of November 2023, Brass Tap Franchisor, LLC also became affiliated with Newk's Franchise Company, LLC, which franchises Newk's Eatery restaurants.
Financial Overview
Investment Range
$792,950 - $1,279,550
Franchise Fee (High)
$25,000
Royalty %
5%
Marketing %
2%
Equipment Costs (Low)
$185,000
Equipment Costs (High)
$335,000
Working Capital
$30,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The FDD's Special Risks section indicates that the financial condition of The Brass Tap Franchisor, LLC, as shown in its financial statements, raises questions about its ability to provide services and support to franchisees. The parent company, FSC Franchise Holdings, LLC, reported net losses of $739,889 in 2024 and $880,345 in 2023. These financial results have led to concerns about the franchisor's ongoing financial capacity.
Financing Details
The Brass Tap Franchisor, LLC does not offer any direct or indirect financing to its franchisees. Additionally, it does not guarantee any notes, leases, or other obligations that a franchisee might incur.
Performance Metrics
Total US Locations
53
Franchised Units
51
Corporate Units
2
Avg Square Footage
3,500
Franchising Since
2011
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
The Brass Tap Franchisor, LLC has no litigation to report, as no litigation is required to be disclosed in Item 3 of the FDD.
Bankruptcy History
The Brass Tap Franchisor, LLC has no bankruptcy history to report, as no bankruptcy is required to be disclosed in Item 4 of the FDD.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise, Brass Tap franchisees must first notify the franchisor in writing during the first 90 days of the ninth year of the current agreement term (or fourth year for successor franchises). The franchisee must maintain possession of the existing site or secure a new approved location. They are required to spend at least $100,000 to re-image, remodel, expand, or upgrade their Brass Tap Bar to meet the current standards. They must also sign a new successor franchise agreement, which may have different terms and conditions, and a general release of claims against the franchisor. Additionally, franchisees or their approved Designated Operators must complete any new training and refresher programs required by the franchisor, with the franchisee covering all associated travel, wages, and living costs. A $20,000 successor franchise fee is also required for the first successor franchise, but not for a second.
Training & Support Program
Franchisor Assistance
Before a Brass Tap Bar opens, the franchisor assists with site selection and provides contact information for brand-certified architects who prepare prototype design plans. The franchisor also recommends construction contractors and equipment suppliers. They loan a Confidential Operating Manual and provide a 3-week initial training program for up to three operators, though franchisees are responsible for trainees' travel, lodging, and meals. A corporate representative visits the Brass Tap Bar before opening to check building and equipment status. After opening, the franchisor offers ongoing advisory assistance for operations, advertising, merchandising, and public relations. This includes guidance on standards, specifications, purchasing, menus, suppliers, and marketing programs, provided through manuals, bulletins, phone consultations, or office visits. The franchisor also conducts inspections of Brass Tap Bar operations and administers a system-wide Marketing and Development Fund to which franchisees contribute.
Initial Training Hours
231
Training Location
Franchisor corporate headquarters and certified training locations, currently near Tampa, Florida.
Ongoing Support
After The Brass Tap bars open, franchisees receive continuous advisory assistance from the franchisor regarding operations, advertising, merchandising, and public relations. This guidance is provided through the Confidential Operating Manuals, bulletins, written materials, telephone consultations, and in-person consultations at the franchisor's office or the Brass Tap Bar. The franchisor may also offer additional or refresher training programs for franchisees and their employees for an additional fee, plus expenses. They regularly issue and modify System Standards that franchisees must follow and conduct inspections of Brass Tap Bar operations, including photographing, videotaping, and product testing. The franchisor also establishes, maintains, and administers the Marketing and Development Fund to support system-wide advertising, marketing, and public relations programs. Additionally, the franchisor may conduct annual meetings or training sessions, which may be mandatory for franchisees or their Operating Managers, with franchisees responsible for their attendees' expenses.
Franchise Requirements
Ideal Candidate Profile
The Brass Tap Franchisor, LLC is looking for franchisees or their designated Operating Partners who will devote full-time energy and best efforts to managing and operating The Brass Tap® Bar, taking primary responsibility for its daily operations. If the franchisee is a business entity or not actively supervising, an Operating Partner must be recruited, hired, and maintained. This Operating Partner must have management experience that is satisfactory to the franchisor, possess day-to-day management responsibility, and be employed full-time to manage The Brass Tap® Bar. They must also sign the franchisor's confidentiality and non-competition agreement and successfully complete the new franchisee application process and initial training requirements.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Hands-On
Territory Type
Protected
Territory Size Requirements
For a single Brass Tap Bar, the Protected Territory consists of the area within a 3-mile radius from the approved site. For Area Development Agreements, the Exclusive Area size varies based on the number of Brass Tap Bars committed to be opened and is defined in the agreement.
Staffing Notes
Brass Tap Bars require managers and personnel in sufficient numbers to provide efficient customer service. During all hours of operation, The Brass Tap® Bar must be directly supervised by at least one Designated Operator (an Operating Partner and/or Operating Manager) and one other management-level employee. Both of these management personnel must have successfully completed the Initial Training or Headquarters Training. All managerial employees must sign the franchisor's confidentiality and non-competition agreement. If the franchisee or a principal owner is not actively managing, they must hire an Operating Partner who has satisfactory experience, day-to-day full-time management responsibility, and completes the required training.