Voodoo Brewery logo

Voodoo Brewery Franchise

Audited Financials
Food and BeverageEst. 2018Union City, PA
www.voodoofranchising.com

Risk Score

Pending analysis

Investment Range

$481,500 - $2,075,000

Total US Locations

27

Business Summary

Voodoo Brewing Co. offers a franchise for a restaurant and bar. The restaurant features Voodoo Brewing Co. beers and/or similar beverages, along with pub food, other beverages, and retail items. These businesses provide on-premises dining, carryout, and catering services.

Corporate History

Voodoo Licensing LLC, the franchisor for Voodoo Brewing Co., was established as a Pennsylvania limited liability company on March 9, 2018. The company began offering franchises in April 2019. Voodoo Licensing LLC also has an affiliate, Voodoo Brewing Co., Inc., which was established in December 2005 and operates similar businesses. This affiliate is the owner of the Licensed Marks. Another affiliate, Voodoo Licensing Southern LLC, was established in June 2023 and began offering franchises in Alabama, Arizona, Mississippi, and Virginia in November 2023.

Financial Overview

Investment Range

$481,500 - $2,075,000

Franchise Fee (High)

$200,000

Royalty %

6%

Marketing %

0.5%

Equipment Costs (Low)

$251,000

Equipment Costs (High)

$1,070,000

Working Capital

$125,000

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

Voodoo Licensing LLC's financial condition raises questions about its ability to provide services and support to franchisees. The company has a negative net worth, reporting a deficit of ($1,561,648) in 2024, ($1,344,713) in 2023, and ($928,026) in 2022. Voodoo Licensing LLC has also experienced consistent net losses, with ($478,310) in 2024, ($406,687) in 2023, and ($652,003) in 2022. Additionally, the company had negative cash flow from operating activities in 2024.

Financing Details

Voodoo Licensing LLC does not offer any direct or indirect financing to its franchisees. The franchisor also does not guarantee any notes, leases, or other financial obligations for franchisees.

Performance Metrics

Total US Locations

27

Franchised Units

23

Corporate Units

4

Avg Square Footage

4,000

Franchising Since

2019

Agreement Terms

Initial Term

10 years

Renewal Term

5 years

Renewal Conditions

To renew, Voodoo Brewing Co. franchisees must be in compliance with their Franchise Agreement and all related agreements. They must provide written notice of their intent to renew between 60 and 180 days before the initial term expires. Franchisees are required to sign the franchisor's then-current Franchise Agreement and any other related agreements for the renewal term, which may contain materially different terms. They must also sign a general release in favor of the franchisor, pay a renewal fee, and remodel and upgrade their restaurant to meet current brand standards. Franchisees must also secure the legal right to continue operating at their restaurant location and complete any additional training required by the franchisor. All owners and their spouses must comply with their agreements and personally guarantee the terms of the new renewal Franchise Agreement.

Training & Support Program

Franchisor Assistance

Voodoo Brewing Co. provides pre-opening support by granting the franchise rights and access to its confidential manuals. The franchisor assists with site review and approval and provides lists of approved suppliers, signage, equipment, furniture, and fixtures. Voodoo Brewing Co. also identifies the franchisee's restaurant on its website and offers initial training for the franchisee's managing owner, one designated manager, and up to two additional individuals at no extra cost. Post-opening, the franchisor may require or offer supplemental on-site training (for a fee), communicate operating and marketing standards, provide approved vendor lists, coordinate an annual system conference (with an attendance fee), and administer marketing funds. The franchisor also reserves the right to designate pricing and promotions.

Initial Training Hours

69

Training Location

At the grand opening of another franchise location, Pittsburgh, PA, Houston (West Pike), PA, or Franchisee's Restaurant Location

Ongoing Support

After opening, Voodoo Brewing Co. may require franchisees and their operating managers to participate in supplemental on-site training for a fee, which is currently $500 per trainer per day plus incurred expenses. The franchisor also establishes and communicates updated operating, marketing, and brand standards, provides lists of approved vendors, and administers system-wide marketing funds. Franchisees are required to attend an annual system conference (with an attendance fee). The franchisor reserves the right to designate maximum, minimum, and promotional pricing and promotions.

Franchise Requirements

Ideal Candidate Profile

Voodoo Brewing Co. is seeking individuals who are committed to active, continuing, and substantial personal involvement and hands-on supervision in the management and operations of their Voodoo Brewing Co. restaurant. If the franchisee is a corporate entity, the designated managing owner must be personally responsible for these aspects. Franchisees may hire an operating manager, but the managing owner retains overall supervision. The franchisor recommends that the managing owner participate in day-to-day operations.

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

Protected

Territory Size Requirements

Voodoo Brewing Co. designates an area around the approved restaurant site as the designated territory. Generally, this territory will be a two-mile radius from the restaurant location in all directions traversable by road. However, the size and scope may be smaller based on factors such as population density, demographics, and geographical boundaries. If a restaurant is in a non-traditional location or a captive market facility like a shopping mall or airport, the designated territory may be limited to the physical boundaries of that specific location or facility.