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Growler USA Franchise Costs & Fees

Date of Incorporation: 2014
Franchising Since: 2014
Headquarters: Centennial, Colorado

Business Description: GrowlerU Franco, LLC is the franchisor. Growler USA Microbrew Pubs serve fresh craft beer, hard cider, wine, kombucha and other beverages and a variety of food items approved by the franchisor.

Franchise Offer: 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.

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.

Training and Assistance: The franchisor will hold the management training program in Denver, Colorado at its corporate headquarters or at a Microbrew Pub. The management training program will take four and a half to five days to complete. If franchisees ask that the franchisor provide additional on-site training, and it is able to do so, then they will pay the then-current per diem charges and out-of-pocket expenses. Before franchisees open their Microbrew Pub, they will need to train their team members. The franchisor may require franchisees’ employees to enroll in web-based training programs for which there may be an annual charge per employee. The franchisor will provide at least one representative to be present at the opening of the Franchised Business 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. Additional training materials will be provided to franchisees periodically by electronic means, and franchisees will bear the cost of printing and lamination. Periodically the franchisor will provide ongoing training.

Territory: During the term of the Franchise Agreement, so long as franchisees remain in compliance with the terms of the Franchise Agreement, the franchisor will not establish or license anyone else to establish, another Growler USA Microbrew Pub operating under the Marks at any location within the “Territory” that is designated in the Franchise Agreement. The size of the Territory will vary depending on, among other things, the location in which franchisees wish to serve as a franchisee. Typically, the Territory will be set as a traveling distance of one half to three miles from the Franchised Location. The perimeters of the Territory may be described by specific street boundaries, county lines, state lines, municipal boundaries, railroad tracks, or other similar boundary descriptions, and the size may range from a portion of a metropolitan area to a county in less densely populated areas.

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.

Obligations and Restrictions: The Franchise Agreement does not require franchisees to participate personally in the direct operation of the Microbrew Pub, although the franchisor encourages and recommends active participation. The franchisor does, however, require that franchisees or the Franchised Business Manager devote full time and best efforts to the management of the Microbrew Pub. If franchisees are a business entity, they must designate one of their principals with an ownership interest and who the franchisor has previously approved to serve as their “Spokesperson”. The Spokesperson must have at least a 15% equity interest in the franchisee entity and must successfully complete the management training program. The Spokesperson may serve as the Franchised Business Manager. Franchisees must use the business premises solely for the operation of the Microbrew Pub. Franchisees must maintain sufficient inventories, adequately staff each shift with qualified employees and continuously operate the Microbrew Pub at its maximum capacity and efficiency for the minimum number of days and hours that the franchisor specifies in the Manual or otherwise in writing. Franchisees may sell and provide only products and services that conform to the franchisor’s standards and specifications.

Estimated Number of Units: N/A

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $35,000 $35,000
Real Estate Leasing $13,333 $50,000
Construction Costs & Specialized Labor $159,450 $244,450
Fixtures, Furniture and Equipment $135,000 $172,000
Professional Fees $11,000 $13,500
Opening Inventory 11,950 $19,540
Grand Opening Marketing and Promotion $5,000 $5,000
Insurance $3,000 $5,000
Initial Training Expenses $1,900 $5,100
Business Licenses and Permits $3,000 $7,000
Utility, Security & Cooperage (keg) Deposits $2,730 $4,720
Additional Funds (first 3 months) $15,000 $30,000
ESTIMATED TOTAL $396,363 $591,310
Other Fees
Type of Fee Amount
Royalty Fee Greater of $150 weekly or 6% of Gross Sales.
Advertising Fee Monthly payment: $1,000 until franchisor has 1500 franchise agreements. $1,500 from then on.
Brand Fund Currently 3% of weekly Gross Sales.
Local Marketing Obligation Currently, franchisees must set aside 2% of weekly Gross Sales and spend that amount on an annual basis for local marketing.
Grand Opening Marketing Program Minimum of $5,000
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% 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.
Technology Fee Up to $50 per week, currently $35 per week.
Training – Additional On-Site Training Currently, $750/day.
Transfer Fee $7,500

The above information has been taken from the FDD of Growler USA. Year of FDD: 2016

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