The Growler Guys Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$129,200 - $565,900
Franchise Fee
$100,000
Total US Locations
11
Business Summary
The Growler Guys offers area franchises the right to sell and support unit franchises that operate under the trade name "The Growler Guys." These unit franchises specialize in the retail sales of craft beverages, various size bottles for filling with beer, cider, kombucha, and other beverages. They also sell glasses, mugs, and related products and accessories such as beer caps, hard ciders, sangria, coffee, specialty bottled beer, Crowler cans, T-shirts, hats, and proprietary food menu items.
Corporate History
Black Beer, LLC was incorporated in Oregon on September 6, 2019, and is the current franchisor for The Growler Guys. The brand's origin dates back to its predecessor, The Growler Guys, LLC, which started operating growler stores in 2012 and began offering unit franchises in 2013. Black Beer, LLC acquired substantially all of the predecessor's assets, including trademarks and intellectual property, in September 2019. Since then, Black Beer, LLC began offering unit franchises in October 2019 and started offering area franchises in March 2022. The system currently consists of eleven operating stores across five states, with three of these being Express locations, and no area franchises have been established yet.
Financial Overview
Investment Range
$129,200 - $565,900
Franchise Fee (Low)
$100,000
Franchise Fee (High)
$500,000
Royalty %
6%
Marketing %
1%
Working Capital
$37,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Black Beer LLC experienced a net loss of $25,302 in 2022, which was restated from a larger initial loss, and achieved a small net income of $973 in 2023. The company's financial statements reflect the deconsolidation of its wholly-owned subsidiary, Southern Oregon Growlers, LLC, effective January 1, 2022, when its net assets were distributed to a member. This means the 2022 and 2023 financial figures for Black Beer LLC represent its operations as a standalone entity, while the 2021 figures were consolidated. The independent auditor expressed an unqualified opinion on the financial statements, noting the deconsolidation as an emphasis of matter.
Financing Details
The Growler Guys does not offer any direct or indirect financing to its franchisees, nor does it guarantee any lease or other obligations for them.
Performance Metrics
Total US Locations
11
Franchised Units
8
Corporate Units
3
Franchising Since
2013
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
The Growler Guys has no litigation to report in this Disclosure Document.
Bankruptcy History
The Growler Guys has no bankruptcy history to report in this Disclosure Document.
Agreement Terms
Initial Term
20 years
Renewal Term
10 years
Renewal Conditions
To renew its Area Franchise Agreement, The Growler Guys franchisee must provide written notice of their intent to renew between 6 and 12 months before the current term ends. They must be in full compliance with all agreements, have met all financial obligations, pay a renewal fee of 25% of the then-current initial franchise fee, sign the franchisor's current Area Franchise Agreement, and execute a general release of claims. Additionally, the franchisee must meet the franchisor's current qualification and training requirements. The franchisor reserves the right not to renew if it decides to cease business in the territory and provides 180 days' notice.
Training & Support Program
Franchisor Assistance
The Growler Guys provides several layers of support to its area franchisees. Before opening, the franchisor grants the right to use its marks and system, provides access to confidential operations manuals and training aids, and conducts an initial training program for the Operating Principal at no charge. The franchisor also furnishes template Unit Franchise Agreements and Unit FDDs for the area franchisee to adapt for their territory. After opening, The Growler Guys provides ongoing assistance through necessary visits and evaluations of the area franchise and its unit franchise locations to maintain quality standards. This includes providing advice and updated written materials, such as online manuals, on managing and operating the area franchise. The franchisor also conducts optional and mandatory training programs for area franchise personnel, administers the advertising fund, and offers indemnification for damages arising from the use of marks. Furthermore, The Growler Guys reserves the right to temporarily step in and operate the area franchise business if operational problems or incapacitation occur.
Initial Training Hours
96
Training Location
Corporate headquarters in Grants Pass, OR
Ongoing Support
After opening, The Growler Guys provides ongoing support to its area franchisees through periodic visits and evaluations of both the area franchise and its unit franchise locations to maintain quality standards. This includes providing advice and updated written materials, such as online manuals, on area franchise management and operations. The franchisor also conducts optional and mandatory training programs for area franchise personnel, administers the advertising fund, and offers indemnification for trademark use-related damages. In certain situations, The Growler Guys may temporarily step in to operate the area franchise business to prevent interruption, such as due to franchisee incapacitation or severe operational issues.
Franchise Requirements
Ideal Candidate Profile
The Growler Guys seeks area franchisees who will designate an Operating Principal. If the franchisee is an individual, they will serve as the Operating Principal. If an entity, the Operating Principal must be a Controlling Principal with an equity interest in the entity. The Operating Principal, or their approved designee, must dedicate substantial full-time effort to supervising and performing the area franchise's duties, and meet the franchisor's specified standards for the role. The Operating Principal is also required to personally guarantee the area franchisee's performance under the agreement.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
hybrid
Owner Participation
supervisory
Territory Type
exclusive
Staffing Notes
The Growler Guys area franchisees are required to designate an Operating Principal. If the franchisee is an individual, they must be the Operating Principal. If the franchisee is an entity, the Operating Principal must be one of the Controlling Principals and hold an ownership interest in the franchisee. The Operating Principal, or an approved designee, must devote substantial full-time efforts to the supervision and conduct of the Growler Guys area franchised business. They must also successfully complete the initial training program, which includes both operations training (waivable if already completed) and area franchisor training. If the Operating Principal or designee becomes unable to serve, a qualified replacement must be designated within 30 days.