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How Much Does It Cost to Open Growler USA Franchise?

Do you want to open a microbrewery business by buying Growler USA franchise? If YES, here is how much it cost to open a Growler USA franchise successfully. If you are looking towards opening a Growler Franchise, it will be nice for you to have a of what the company represents before going ahead to enquire about the total cost of opening the franchise in your location.

Growler USA started operations in 2014. They have their corporate head office at Centennial, Colorado and presently they have an estimated 45 franchise units in operation. GrowlerU Franco, LLC is the franchisor for the business. The franchisee will operate a microbrew pub and growler filling station that delivers micro brewed beers and hand – crafted beverages under the “Growler USA” mark.

Growler USA Microbrew Pubs serve craft beer, hard cider, wine, kombucha and other beverages. They also feature food menu items and products approved by the franchisor. Before opening the Microbrew Pub, the franchise’s Spokesperson must attend and successfully complete, to the franchisor’s satisfaction, its two-day owner orientation program.

Before franchisees open their Microbrew Pub, their Spokesperson, their full-time general manager (the Franchised Business Manager), and their full-time Kitchen Manager, must attend and successfully complete, to the franchisor’s satisfaction, the two-week management certification training program. The franchisor will hold the management certification training program at its Centennial, CO home office location, or at a Growler USA Pub.

If franchisees request that the franchisor provides additional field support training, or if the franchisor deems that additional field support is necessary, franchisees will pay the franchisor’s then-current field training per diem charges as well as any out-of-pocket training expenses.

Additional training materials will be provided to franchisees periodically by electronic means, at which time franchisees will bear the cost of printing and lamination. The franchisor will provide at least one representative to be present at the opening of the Microbrew Pub for a period of three to four days. The franchisor will provide such additional on-site pre-opening and opening supervision and assistance as it deems advisable.

Financial Investment Required to Open a Growler USA Franchise

  • Initial Franchise Fee: $35,000 to $35,000
  • Real Estate Leasing Deposits: $16,667 to $50,000
  • Construction, Specialized Labor, Signage & Tenant Improvement Reimbursement: $259,688 to $295,737
  • Project Management Fee (Fixtures, Furniture, Equipment, Smallwares, Electronics, Computer/Office Equipment & Shipping): $228,394 to $260,229
  • Professional Fees: $15,500 to $32,650
  • Opening Inventory: $19,072 to $36,296
  • Grand Opening Marketing and Promotion: $10,000 to $15,000
  • Insurance: $5,200 to $6,700
  • Initial Training Expenses: $18,192 to $30,410
  • Business Licenses and Permits: $4,000 to $15,000
  • Utility, Security & Cooperage (keg) Deposits: $4,500 to $5,700
  • Additional Funds (3 months): $30,000 to $45,000

ESTIMATED TOTAL: $656,263 to $837,772

  • Royalty Fee: Greater of $150 weekly or 6 percent of Gross Sales.
  • Brand Fund: 2 percent of weekly Gross Sales in first year; 3 percent after first year
  • Local Marketing Obligation: 1 percent of weekly Gross Sales in first year; 2 percent after first year
  • Technology Fee: Up to $50 per week, currently $35 per week.
  • Grand Opening Marketing Program: $10,000 to $15,000
  • Audit Costs: All costs and expenses associated with the audit, reasonable accounting and legal costs.
  • Costs and Attorneys’ Fees: Will vary under circumstances.
  • Indemnity: Will vary under circumstances.
  • Insurance: Reimbursement of Costs  The franchisor’s out-of-pocket costs.
  • Interest; Late Payment Fee: Interest on the amount owed from the date due until paid; and a $25 late charge for each week that a payment is delinquent.
  • Renewal Fee: $7,000 or 20 percent of the then-current initial franchise fee, whichever is more.
  • Relocation: The franchisor’s out-of-pocket costs.
  • Securities Offering Fee: $5,000 or the franchisor’s actual costs and expenses, whichever is more.
  • Taxes: The franchisor’s expenses.
  • Training – Additional On-Site Training: Currently, $750/ day.
  • Transfer Fee: $7,500
  • Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Two additional 10 – year renewal terms are available, if requirements are met.
  • Financial Assistance: Neither the franchisor nor any agent or affiliate offers direct or indirect financing to franchisees or guarantees any note, lease or obligation of theirs.

In Summary

  • Liquid capital required: $200,000
  • Net worth required: $900,000
  • Investment: $556,148 – $895,519
  • Franchise fee: $35,000