Updated on April 7, 2018.
Detailed Estimates of The Brass Tap Franchise Costs Based on Item 7 (Estimated Initial Investment) of The Brass Tap’s 2017 Franchise Disclosure Document
- The amounts set forth in the table below assume a Brass Tap Bar ranging in size from 2,800 to 3,600 square feet.
1. Franchise Fee: $37,500
2. Leasehold Improvements: $448,000 to $720,000
- These figures are based on the cost of adapting the franchisor’s prototypical architectural and design plans to remodel and finish-out the Brass Tap Bar and the cost of leasehold improvements. These figures are the franchisor’s best estimate based on remodeling/finish-out rates.
3. Lease Deposit: $17,500 to $40,500
- The figures are based on 3 months of rent and assume that the premises of the Brass Tap Bar will be approximately 2,800 to 3,600 square feet in size and will be situated in a shopping center or urban location.
- Annual lease costs are estimated at between $25 and $45 per square foot.
- These estimates do not include the cost to purchase real estate, since it is assumed that you will rent the space for your Brass Tap Bar.
- You will probably need to provide security deposits to your landlord and your local utilities, such as gas, electric, and water.
4. Equipment: $140,000 to $210,000
- You must purchase equipment meeting the franchisor’s specifications to be used in the Brass Tap Bar, including a walk-in cooler, a tap system, bar back and sinks, and any equipment necessary for food preparation and storage.
5. Furnishings and Fixtures: $20,000 to $45,000
- The furnishings and fixtures you must purchase include tables, chairs, booths, bar, bar stools, and decor items.
- If your Brass Tap Bar will have patio space, you must have additional tables, chairs, umbrellas, and heaters (if applicable for your climate).
- The franchisor has established relationships with equipment vendors for certain equipment used in the Brass Tap Bar that meets its specifications.
6. Audio and Video Equipment: $25,000 to $50,000
- You must also purchase audio and video equipment the franchisor requires for Brass Tap Bars.
7. Signage: $10,000 to $20,000
- These amounts represent your cost for an interior and exterior sign package. Your landlord or your local ordinances may have different restrictions placed on interior and exterior signage, which may affect your costs.
8. Initial Inventory: $30,000 to $40,000
- These amounts represent your initial inventory of beer, wine, supplies, and paper goods for use in the initial phase of operating the Brass Tap Bar.
9. Architect Fees and Permits: $7,500 to $10,000
- These amounts represent estimated costs you may incur to obtain any architectural and design services necessary for the construction of the Brass Tap Bar. You must adapt the prototypical plans and specifications to suit the premises.
- The franchisor may designate the supplier of architectural services.
10. Computer System: $10,000 to $20,000
- This estimate includes the cost of the POS System and restaurant management computer system (the “Computer System”), including the requisite software, software support, and purchase of services agreements from the franchisor’s approved vendors.
11. PCI Compliance: $467 to $975
- The franchisor currently requires you to use its only approved PCI compliance provider, Nuarx, Inc.
12. Travel, Lodging, and Meals for Initial Training: $2,500 to $8,000
- The franchisor provides the Initial Training for up to three people at no additional charge. These estimates include only your out-of-pocket costs associated with attending the Initial Training, including travel, lodging, meals, and applicable wages.
- These amounts do not include any fees or expenses for training any other personnel.
- The low end of the estimate assumes that you are within driving distance of the training facility.
13. Licenses and Permits: $1,500 to $7,500
- These amounts represent the estimated costs you may incur to obtain local business licenses, which licenses typically remain in effect for one year.
- The franchisor prefers its franchisees to have an outdoor patio area, which may require an additional permit.
14. Insurance: $4,000 to $8,000
- These figures are estimates of the cost of the quarterly premiums for the insurance you must obtain and maintain for your Brass Tap Bar.
15. Promotional and Advertising – 5 Months: $5,000 to $12,000
- You must conduct a grand opening advertising campaign which must include promotional giveaways, such as beverage items and logoed merchandise; be approved by the franchisor in advance; and, be conducted for a total of 60 days (30 days before opening and 30 days after opening, of your Brass Tap Bar).
16. Professional Fees: $3,000 to $8,000
- The franchisor strongly recommends that you engage an accountant and an attorney to advise you in your evaluation of the franchise being offered.
17. Liquor License: $10,000 to $50,000
- The low end of this range represents an estimate of the annual fee for a beer and wine liquor license in Florida and the high end of this range represents a full liquor license in Florida (which is a lifetime asset rather than an annual renewable fee).
- Since the availability and expenses of acquiring a liquor license vary substantially from jurisdiction to jurisdiction, you should consult the appropriate governmental authority concerning the availability of the required license and the associated expenses for your Brass Tap Bar before you sign a Franchise Agreement.
- Depending on the location and jurisdiction, the cost of a liquor license may exceed the high range estimate disclosed in Item 7 and may reach or even exceed $500,000.
18. Additional Funds – 3 Months: $20,000 to $40,000
- These figures cover miscellaneous expenses you may incur during the first 3 months of your Brass Tap Bar’s operation (such as payroll, utilities, royalty fees, and local advertising) as new businesses often generate a negative cash flow.
19. Total: $791,967 to $1,327,475 (excluding real property/tenant improvement allowance)
- The franchisor relied upon operating Brass Tap Bars to prepare these figures.