Owning a bar franchise can offer a fulfilling experience to those passionate about the industry. With 35 bar franchise opportunities available, aspiring entrepreneurs can explore a range of options to suit their interests and goals. From lively sports bars to cozy pubs, these franchises provide a platform for individuals to immerse themselves in the exciting world of bar ownership. Read on for a franchise guide for aspiring bar owners.
What is a Bar Franchise?
A bar franchise is a business arrangement where individuals or companies can invest in and operate a bar using an established brand and operational model. It offers a structured framework for aspiring entrepreneurs to enter the bar industry with support and guidance from the franchisor.
Pros and Cons of a Bar Franchise
Owning a bar franchise has its pros and cons. The advantages include a proven bar business plan, brand recognition, and support from the franchisor. However, it can also involve high initial costs and ongoing fees that can cut into your bar profit margin, along with limited autonomy. Here’s a closer look:
Pros of Owning a Bar Franchise
- Established Business Model: Bar franchises have already proven their business models successful. They have tested and fine-tuned their operations, marketing strategies, and services to optimize their appeal to customers. This reduces the risk of investment significantly compared to starting a business from scratch.
- Brand Recognition: By investing in a bar franchise, you gain instant access to an established brand. Customers who are familiar with the brand are likely to patronize your bar based on their previous experiences, which can be advantageous when trying to build a customer base.
- Training and Support: Most franchisors provide training to franchisees, ensuring that they know how to operate the business effectively. This can range from managerial training to bartending skills, providing you with the necessary expertise to run the bar. In addition, ongoing support in terms of marketing, operations, and updates is generally provided.
- Vendor Relationships: Franchisors often have established relationships with suppliers, and they can negotiate better prices for inventory because they’re buying in bulk for all their franchises. This can result in lower costs and easier sourcing of supplies.
Cons of Owning a Bar Franchise
- High Initial Investment: Bar franchises can require a significant upfront investment, which includes the franchise fee, inventory, equipment, and leasehold improvements. This initial cost can be considerably higher than what it might cost to start an independent bar.
- Ongoing Fees: Most franchises require ongoing royalty and advertising fees, which are typically a percentage of your gross sales. These fees can take a substantial chunk out of your profits.
- Limited Creativity and Autonomy: When you own a franchise, you must follow the rules set by the franchisor. This can limit your ability to make changes to the menu, décor, or even operational hours based on your local market’s needs or your personal preferences.
- Reputation Dependence: While brand recognition can be a benefit, your business is also tied to the overall franchise brand’s reputation. If the franchisor or another franchisee has a scandal or negative publicity, it can impact your franchise as well.
- Exit Strategy Difficulties: Selling a franchise can be more complicated than selling an independently owned business. The franchisor usually has the right to approve any potential buyers, and there may be fees associated with selling the franchise.
Considering these pros and cons, it’s crucial to thoroughly research and understand the terms of the franchise agreement, consult with a business advisor or attorney, and make sure the franchise fits with your business goals and lifestyle before making a decision.
Our Methodology Towards Choosing the Best Bar Franchise Opportunities
To make an informed choice, it’s crucial to evaluate various factors. We’ve outlined these criteria below, each rated on a scale of importance from 1 (least important) to 5 (most important):
- Location and Demographics (Rating: 5):
- Proximity to your target customer base.
- Analyzing the local demand for bars and nightlife.
- Competitor presence and market saturation.
- Franchise Reputation and Track Record (Rating: 5):
- Assessing the franchise’s history of success.
- Gathering feedback from existing franchisees.
- Evaluating the level of support provided by the franchisor.
- Initial Investment and ROI (Rating: 4):
- Total initial investment required, including franchise fees and build-out costs.
- Projected return on investment (ROI) and profitability.
- Availability of financing options and support from the franchisor.
- Quality of Food and Drinks (Rating: 4):
- Evaluating the menu and beverage offerings.
- Ensuring high-quality ingredients and preparation.
- Considering the potential for unique or signature items.
- Marketing and Branding Support (Rating: 3):
- Reviewing the franchisor’s marketing strategies and materials.
- Assessing national and local advertising efforts.
- Gauging the level of brand recognition and customer loyalty.
- Training and Ongoing Support (Rating: 3):
- Investigating the comprehensiveness of training programs.
- Understanding the level of ongoing support from the franchisor.
- Connecting with a network of fellow franchisees for assistance.
- Licensing and Compliance (Rating: 2):
- Ensuring the franchise adheres to all legal requirements for alcohol service.
- Reviewing the transparency of contract terms.
- Checking for any history of legal issues or disputes.
- Unique Selling Proposition (Rating: 4):
- Identifying what sets the franchise apart in terms of atmosphere, theme, or offerings.
- Assessing the potential for attracting a loyal customer base.
- Flexibility and Growth Potential (Rating: 3):
- Examining the level of independence allowed by the franchisor.
- Identifying opportunities for expansion or diversification.
- Assessing the potential for long-term growth within the franchise.
Sports Bar Franchises
Sports bar franchises offer a vibrant atmosphere for sports enthusiasts to gather, socialize, and enjoy thrilling games. Here are some popular franchises to get involved in the sports bar business:
Greene Turtle Sports Bar
The initial investment for a Greene Turtle Sports Bar ranges from $1,455,000 to $1,757,500, including rent, property improvements, liquor license, insurance, signage, equipment, inventory, and working capital. The franchise fee is $45,000.
Hooters
Hooters, a beach-themed restaurant chain, offers franchising with a $75k fee, 20-year term, 5% royalty rate, and an investment range of $2.7M-$4.1M. The brand also offers training, support, and tons of brand recognition.
Beef O’Brady’s Family Sports Pub
Beef O’Brady’s offers an affordable franchising opportunity with low fees. Franchisees need $300,000 in liquid assets and a $1,000,000 minimum net worth with no restaurant experience required.
Twin Peaks
Start your own Twin Peaks franchise and experience the ultimate sports lodge atmosphere and quality food and drinks. The initial cost ranges from $1,520,800 to $5,106,500.
Ground Round Grill and Bar
Ground Round Grill & Bar is a well-established casual dining brand. Franchisees can own a share in the overall brand with an initial investment ranging from $320,000 to $2,200,000.
Brass Tap
The Brass Tap‘s financial requirements include a net worth of $1 million and liquid assets of $300,000 per location. The initial investment ranges from $791,967 to $1,327,475. Franchise fees consist of a $40,000 fee and a 4% royalty fee on sales. Many locations are available in prime markets.
Native Grill and Wings
Native Grill & Wings requires a minimum investment of $500,000 and a net worth of $1 million. Startup costs range from $998,000 to $2,620,500.
Wings and Rings
Wings and Rings offer franchise opportunities with an initial fee of $0 to $40,000. Additional costs include leasehold improvements, furniture, equipment, signage, training expenses, and more, totaling $1,359,000 to $2,125,650. Strong training and support are included in these costs.
Walk-On’s
Walk-On’s offers a franchise opportunity with a family-friendly atmosphere, culinary excellence, and community involvement. They have a royalty fee of 5% and a marketing fee of 2% of gross revenues.
Anthem Kitchen + Bar
Introducing Anthem Kitchen + Bar by BigShots Golf, a sports bar for every fan, offering bold flavors and quality, scratch-made food. With a strong unique selling proposition, opening a BigShots Golf franchise costs $8.6M to $12M, including a $125,000 initial franchise fee and an 8% royalty fee.
Wine Bar Franchises
With their sophisticated ambiance and a focus on oenophiles, wine bar franchises provide a refined setting for indulging in fine wines. Here are some prominent franchises to consider:
We Olive
We Olive offers a unique franchise experience centered around high-quality olive oil products and wines. An initial investment of $285,000-$421,500 and a $30,000 franchise fee provides a fun and delicious opportunity for passionate food and wine enthusiasts.
d’Vine Wine Bar
d’Vine Wine Bar offers lucrative franchising opportunities in the booming wine industry, with quality food and drinks and in-demand locations available. Franchisees receive comprehensive training, assistance in finding properties, and ongoing.
Society Wine Bar
Society Wine Bar offers a unique franchise opportunity with four revenue streams: a wine bar, a wine retail shop, a wine society with classes and events, and wine club memberships. With a low initial investment of around $200,000, it’s an affordable business to own.
WineStyles Tasting Station
WineStyles Tasting Station offers a franchise opportunity in the wine, craft beer, and gourmet food industries. The investment ranges from $230,500 to $475,500, with a $25,000 franchise fee.
Water 2 Wine
A Water 2 Wine franchise offers a decade of winery business experience, helping you achieve your dream of owning a winery. With a tested business plan and unique offerings, costs include a franchise fee of $40,000 and an investment range of $167,500 to $548,650.
Craft Beer Bar Franchises
Here are some craft beer bar franchises that cater to beer enthusiasts seeking unique and artisanal brews and offer a diverse range of flavors and styles.
Hissho Sushi & Craft Beer Bar
Hissho Sushi & Craft Beer Bar offers a franchise program with quality food and drinks and many in-demand locations available. This opportunity requires an investment range of $350K-$750K, including a franchise fee of $20K.
Craft Beer Cellar
Craft Beer Cellar offers franchise opportunities in the booming craft beer industry with an estimated investment of $50k-$150k. Comprehensive support and training provided.
The Hop Knot
Connecticut’s premier craft beer and gourmet pretzel bar, The Hop Knot, offers a franchise opportunity with a strong operating model and an initial investment ranging from $175,000 to $367,500.
Ceviches by Divino
Ceviches by Divino is a Peruvian-style gastropub franchise that offers a unique culinary experience with authentic flavors. The initial investment ranges from $129,400 to $261,400, including a $29,900 franchise fee.
World of Beer
This opportunity features quality food and drinks along with strong brand presence in markets around the country. For a World of Beer franchise, candidates need industry experience, $300K+ liquid assets, and $1MM+ net worth. Fees include a $50K franchise fee, 5% royalty, and 1.5% marketing expenditure.
Top Grill Bar Franchises to Consider
When it comes to savoring delectable grilled dishes in a lively setting, these top grill bar franchises stand out…
Arooga’s Grille House
Arooga’s Grille House awards franchises instead of selling them, creating a unique selling proposition for potential business owners. The estimated initial investment ranges from $1,313,400 to $3,996,900. A net worth of $4 million or more with liquid assets of $1 million or more is required.
Buffalo Wild Wings
Buffalo Wild Wings offers a strong brand reputation and tons of quality locations that are popular with the company’s target market. The company seeks U.S. franchisees with $750K liquid assets and $1.5M net worth, and a commitment to develop at least two restaurants. Initial investment ranges from $529K-$796K.
Bar Louie
Bar Louie is known for its quality food and drinks and strong brand reputation. Franchisees should have relevant experience, a strong work ethic, and community involvement and meet financial requirements of $2 million in liquid assets and $5 million in net worth.
Hotshots Sports Bar & Grill
Hotshots Sports Bar & Grill offers franchise opportunities with an established business model, quick start-up, and a focus on customer service. The investment ranges from $476,000 to $1,006,000, with a minimum liquid capital of $100,000.
Glory Days Grill
Glory Days Grill requires $750,000 in liquid assets and a net worth of $1.5 million per restaurant, with additional costs of $1.7 million to $2.5 million for each restaurant.
The Pizza and Beer Combo: A Winning Formula
For pizza enthusiasts looking for a unique dining experience, these pizza bar franchises offer mouthwatering slices in an inviting atmosphere. Explore them below:
Boston’s Pizza Restaurant
Boston’s Pizza Restaurant franchise fee is $50,000, with a royalty fee of 5% of gross sales and a national advertising fee of 3%. The total investment ranges from $1,125,000 to $2,816,000.
Smokin’ Oak Wood-Fired Pizza
Smokin’ Oak Wood-Fired Pizza offers a franchise with fresh ingredients, an open-plan kitchen, and a self-pour taproom wall. The total investment range is $336,120 to $889,313, depending on location-specific factors.
Zeeks Pizza
Zeeks Pizza offers unique franchise opportunities with investment levels ranging from $335,850 to $1,378,750. They focus on craft beer, and authentic pizza, and offer various retail footprints suitable for different markets.
Pizza Hut
To qualify as a Pizza Hut franchisee, one needs a $700,000 net worth, $350,000 liquid assets, relevant experience, a growth mindset, and passion. Franchise fees include a $25,000 initial fee, a 6% monthly service fee, and 4.75% for national advertising. This is a scalable opportunity, with tons of quality locations available.
Papa John’s
Papa John’s seeks multi-unit franchisees committed to developing five or more restaurants. Requirements include a minimum net worth of $750,000 and $250,000 in cash or liquid assets.
Leading Pub Franchises to Consider
For those seeking an authentic pub experience with a wide selection of drinks and a lively ambiance, these leading pub franchises are worth exploring.
Tilted Kilt Pub & Eatery
Tilted Kilt Pub & Eatery offers a fun, sports-oriented franchise experience with a Celtic theme and friendly staff. The estimated investment ranges from $887,000 to $2,868,000, including a $75,000 initial franchise fee and a 6% royalty fee.
Buffalo Wing Factory and Pub
Buffalo Wing Factory and Pub is a franchisor offering opportunities with investments ranging from $717,750 to $1,074,500 and a franchise fee of $30,000. They provide comprehensive training and support throughout the franchise journey.
Publik Draft House
Publik Draft House is a food franchise offering new franchisees in high quality locations across the US and international regions. The initial investment ranges from $423K to $891K with a $35K franchise fee and ongoing royalties of 5%.
Bout Time Pub & Grub
Bout Time Pub & Grub offers a franchise opportunity with high-quality food, beverages, and service in a sports-themed setting. The franchise fee is up to $50,000, requiring an initial investment range of $400,000 to $500,000.
Anchor Bar
Anchor Bar, known for its Original Buffalo Wing, offers franchising opportunities. This unique history sets the brand apart and leads to a strong reputation. Franchisees need $350,000 liquid capital and can expect a total investment of $400,000 – $600,000.
| Franchise | Type | Initial Investment Range | Franchise Fee | Other Details |
|---|---|---|---|---|
| Greene Turtle Sports Bar | Sports | $1,455,000 – $1,757,500 | $45,000 | |
| Hooters | Sports | $2,700,000 – $4,100,000 | $75,000 | 5% royalty fee |
| Beef O’Brady’s Family Sports Pub | Sports | Liquid assets $300,000 required | None listed | |
| Twin Peaks | Sports | $1,520,800 – $5,106,500 | Not listed | |
| Ground Round Grill and Bar | Sports | $320,000 – $2,200,000 | Not listed | |
| Brass Tap | Sports | $791,967 – $1,327,475 | $40,000 | 4% royalty fee |
| Native Grill and Wings | Sports | $998,000 – $2,620,500 | Not listed | |
| Wings and Rings | Sports | $1,359,000 – $2,125,650 | $0 – $40,000 | |
| Walk-On’s | Sports | Not listed | Not listed | 5% royalty fee, 2% marketing fee |
| Anthem Kitchen + Bar | Sports | $8,600,000 – $12,000,000 | $125,000 | 8% royalty fee |
| We Olive | Wine | $285,000 – $421,500 | $30,000 | |
| d’Vine Wine Bar | Wine | Not listed | Not listed | |
| Society Wine Bar | Wine | $200,000 | Not listed | |
| WineStyles Tasting Station | Wine | $230,500 – $475,500 | $25,000 | |
| Water 2 Wine | Wine | $167,500 – $548,650 | $40,000 | |
| Hissho Sushi & Craft Beer Bar | Craft Beer | $350,000 – $750,000 | $20,000 | |
| Craft Beer Cellar | Craft Beer | $50,000 – $150,000 | Not listed | |
| The Hop Knot | Craft Beer | $175,000 – $367,500 | Not listed | |
| Ceviches by Divino | Craft Beer | $129,400 – $261,400 | $29,900 | |
| World of Beer | Craft Beer | Not listed | $50,000 | 5% royalty fee, 1.5% marketing fee |
| Arooga’s Grille House | Grill | $1,313,400 – $3,996,900 | Not listed | |
| Buffalo Wild Wings | Grill | $529,000 – $796,000 | Not listed | |
| Bar Louie | Grill | Not listed | Not listed | |
| Hotshots Sports Bar & Grill | Grill | $476,000 – $1,006,000 | Not listed | |
| Glory Days Grill | Grill | $1,700,000 – $2,500,000 | Not listed | |
| Boston’s Pizza Restaurant | Pizza/Beer | $1,125,000 – $2,816,000 | $50,000 | 5% royalty fee, 3% ad fee |
| Smokin’ Oak Wood-Fired Pizza | Pizza/Beer | $336,120 – $889,313 | Not listed | |
| Zeeks Pizza | Pizza/Beer | $335,850 – $1,378,750 | Not listed | |
| Pizza Hut | Pizza/Beer | Not listed | $25,000 | 6% service fee, 4.75% ad fee |
| Papa John’s | Pizza/Beer | Not listed | Not listed | |
| Tilted Kilt Pub & Eatery | Pub | $887,000 – $2,868,000 | $75,000 | 6% royalty fee |
| Buffalo Wing Factory and Pub | Pub | $717,750 – $1,074,500 | $30,000 | |
| Publik Draft House | Pub | $423,000 – $891,000 | $35,000 | 5% royalty fee |
| Bout Time Pub & Grub | Pub | $400,000 – $500,000 | Up to $50,000 | |
| Anchor Bar | Pub | $400,000 – $600,000 | Not listed |
How to Choose the Right Bar Franchise
When considering a bar franchise, several important factors come into play such as understanding your market, evaluating franchise support, and assessing costs and potential ROI are key considerations.
Understanding Your Market
Thoroughly research your target demographic, local competition, and market demand to ensure your bar franchise aligns with the preferences and needs of your potential customers. For example, an entrepreneur in a trendy city may be interested in learning how to start a nightclub. But those in a big sports town may find more success with a sports bar.
Evaluating the Franchise Support
Examine the level of support provided by the franchise, including training programs, marketing assistance, operational guidance, and ongoing support to set yourself up for success.
Assessing Franchise Costs and Potential ROI
Carefully analyze the initial investment, ongoing fees, and expected returns on investment. Consider factors like location, customer base, and profitability projections to make an informed decision. For example, if you’re learning how to start a mobile bar business, you’ll likely have fewer overhead costs than a bar with a large physical location. Additionally, factor in expenses like staffing and bar manager salary that are likely to increase as your business grows.
FAQ: Bar Franchises
What is the average cost to start a bar franchise?
The average cost to start a bar franchise varies depending on factors such as the brand, location, size, and specific requirements, with costs typically ranging from tens of thousands to millions of dollars.
How profitable are bar franchises?
The profitability of bar franchises can vary widely based on factors like location, market demand, management, the types of franchises you’re considering, and overall business performance. While many may do well, some franchises like Bikinis Sports Bar, who closed its doors in 2018, end up going out of business.
Are sports bar franchises more profitable than other types?
While sports bar franchises can be highly profitable due to their dedicated customer base, profitability ultimately depends on various factors, including location, competition, marketing, and overall business strategy.
What type of support can a franchisee expect from the franchisor?
Franchisees can expect support in areas such as initial training, ongoing operational guidance, marketing assistance, supply chain management, branding, and access to established systems and processes. This is one of the main differences between franchise vs business opportunity. The exact support varies based on the type of business. For example, a restaurant franchise may offer support finding a location, but a food truck franchise wouldn’t require this specific step.
Is a craft beer bar franchise a good investment?
Investing in a craft beer bar franchise can be a lucrative opportunity, given the increasing popularity of craft beer. However, thorough market analysis, understanding of target demographics, and effective management are crucial for success.
How does a sports and entertainment focus impact a bar franchise?
A sports and entertainment focus can attract a specific customer base, enhance the social atmosphere, and increase revenue through live sports events, game screenings, interactive experiences, and themed entertainment offerings.
How can bar franchises attract sports fans?
Bar franchises can attract sports fans by offering high-definition screens, multiple viewing areas, game-day promotions, sports-themed décor, a wide selection of beverages and food, and creating a vibrant, welcoming sports-watching atmosphere.
What is a Franchise Disclosure Document, and why is it important?
A Franchise Disclosure Document (FDD) provides essential information about a franchise opportunity, including the franchise agreement, financial obligations, franchisor history, litigation history, and other relevant details. It’s important for understanding the terms and risks associated with the franchise.
What are some challenges grill franchise owners face?
Grill franchise owners may face challenges such as maintaining consistent food quality, managing food costs, hiring and retaining skilled staff, competition from other dining options, adapting to changing consumer preferences and ensuring efficient operations.
What makes a grill franchise successful?
Successful grill franchises prioritize factors like menu innovation, high-quality ingredients, exceptional customer service, efficient operations, effective marketing strategies, strategic location selection, strong brand identity, and maintaining a positive dining experience.
This article, “35 Bar Franchise Opportunities” was first published on Small Business Trends