About Sedona Taphouse Franchise
Sedona Taphouse is an upscale, full service, sit-down restaurant franchise featuring multiple taps and a long, revolving list of craft beer brands from around the world, as well as wine and cocktails, and proprietary and confidential food and beverage recipes and related items and services.
Each restaurant must maintain an inventory of at least 500 different approved beer selections and serves only craft beer.
The restaurants provide a comfortable, contemporary atmosphere with live music, wifi access, hundreds of craft beers, select premium wines, hand crafted martinis, and food offerings consisting of both small plates and full entrees, including hand cut seafood and Certified Black Angus steaks.
Sedona Taphouse Franchise Cost & Fees
Minimum Investment
$1.2M
Average Investment
$1.8M
Maximum Investment
$2.4M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 | One-time payment upon signing |
| Royalty Fee | 4% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of Gross Sales | National brand fund |
| Total Investment Range | $1,233,500 – $2,406,320 | Includes build-out, inventory, working capital |
The investment range of $1.2M–$2.4M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (4% of Gross Sales) and marketing fee (1% of Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial franchise fee | $20,000 | $35,000 |
| Pre-opening trainer payroll | $25,000 | $35,000 |
| Travel expenses for trainers | $1,500 | $18,400 |
| Additional initial training for each person in addition to four | $0 | $2,000 |
| Leasehold improvements | $800,000 | $1,600,000 |
| Furniture, fixtures and equipment | $175,000 | $336,420 |
| Signage | $14,000 | $25,000 |
| Point of sale system, computers, printers, other hardware and business software | $14,000 | $20,000 |
| Small wares | $15,000 | $30,000 |
| Inventory | $40,000 | $55,000 |
| Televisions | $2,800 | $4,500 |
| Menus | $1,200 | $1,500 |
| Decor pictures | $5,000 | $7,500 |
| Prepaid rent and security deposit | $6,000 | $19,000 |
| Miscellaneous deposits | $2,000 | $10,000 |
| Travel, living expenses and salaries during initial training | $21,500 | $35,000 |
| Opening parties | $4,000 | $6,000 |
| Legal and accounting fees | $4,000 | $20,000 |
| Architect | $15,000 | $35,000 |
| Initial advertising | $4,000 | $6,000 |
| Interior design | $12,500 | $25,000 |
| Insurance - liability and workers compensation - initial deposit | $1,000 | $5,000 |
| Additional funds - first three months | $50,000 | $75,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 50% of the then-current initial franchise fee |
| Renewal Fee | 25% of the then-current initial fee |
| Audit Fee | $2,000 to $5,000 |
| Relocation fee | $5,000 plus expenses |
| Insurance | Actual costs plus 25% service charge |
| Additional initial training | $2,000 per person trained |
| Field assistance and training after initial training | $350 per day plus expenses |
| Remedial work | Actual costs plus 25% service charge |
| Management fee | $2,000 per week |
| Prohibited product or service fee | $300 per day |
| Returned check/EFT fee | $50 each |
| Interest | 1.5% per month or highest rate allowed by law |
| Nonsolicitation fee | $5,000 |
| Indemnification | Actual costs |
| Attorneys' fees and costs | Actual costs |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 6 weeks (450 hours) initial training plus approximately 2 weeks (80 hours) on-site pre-opening and opening training |
| Classroom Training | 8 hours |
| On-the-Job Training | 444 hours |
| Training Location | Richmond, VA (company or affiliate locations) |
| Additional Training | Approximately 2 weeks (80 hours) of on-site pre-opening and opening training at franchised location. Refresher courses available periodically. Additional training at $350 per day per employee plus travel expenses. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected with exceptions |
| Exclusive Territory | No |
| Territory Size | Radius of 1 mile in urban areas to 5 miles in suburban areas |
| Description | Franchisees receive a protected territory where the franchisor will not establish another Sedona Taphouse restaurant, whether franchised or company-owned. However, the franchisor retains the right to establish locations in non-traditional venues such as airports, hotels, resorts, military installations, school and university campuses, casinos, theme parks and sports stadiums, within or outside the territory. Franchisees will not receive an exclusive territory due to these non-traditional venue rights. Franchisees may not market or sell outside their territory without prior written approval. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years |
| Renewal Fee | 25% of the then-current initial franchise fee |
| Renewal Conditions | Notify franchisor 12-24 months before end of term; repair and update equipment and premises; sign a new franchise agreement which may contain materially different terms; may require signing a release; pay renewal fee |
| Transfer Fee | 50% of the then-current initial franchise fee |
| Transfer Conditions | Transferee meets franchisor criteria; franchisee is in compliance; transfer fee paid; transferee signs new franchise agreement; continuing confidentiality and non-compete requirements acknowledged; new manager trained; franchisor approves terms; franchisor notified of closing |
| Termination for Cause | Franchisor can terminate only if franchisee defaults. Curable defaults: 30 days to cure. Non-curable defaults include misrepresentation, failure to complete training, failure to open within required time, unauthorized disclosure of confidential information, unauthorized use of marks, attempted transfer without approval, failure to pay taxes, failure to maintain insurance, criminal conviction, bankruptcy/insolvency, abandonment, default under another franchise agreement, damage to goodwill. |
| Non-Compete Period | 2 years |
| Non-Compete Details | No competing business for 2 years (including after assignment) within 5 miles of any Sedona Taphouse restaurant at the time the franchise is terminated or expires. During the term, no involvement in competing business anywhere in the U.S. or in any other country in which a Sedona Taphouse restaurant operates. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The operating manager must devote full time, attention and effort to the franchised business and provide direct, day-to-day supervision of the operation. The operating manager and two other managers must attend and complete the initial six-week training program. |
| Required Suppliers | Must purchase from designated or approved suppliers including growlers, table tents, banners, promotional items, menus, food and beverage items, restaurant equipment and furniture, POS system (Toast POS), and many other categories. Must use NoWait and OpenTable for reservations, PFG (Performance Food Group) for food ordering. |
| Supply Restrictions | 15-20% of expenditures for establishing the restaurant and 15-20% of ongoing operating expenditures must be from designated or approved suppliers. Must comply with all standards and specifications for all items. |
| Franchisor Revenue from Suppliers | DJB Hospitality LLC received rebates of $63,868 in 2021 based on sales of certain items to both company-owned and franchised units. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer any financing to you, either directly or indirectly. We do not guaranty your lease or any other obligation. |
Sedona Taphouse Franchise Earnings — Item 19
Sedona Taphouse does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Sedona Taphouse does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Sedona Taphouse Litigation & Risk Flags
Clean Litigation RecordSedona Taphouse has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Sedona Taphouse System Growth
Total Units
16
Franchised
13
Company-Owned
3
Sedona Taphouse currently operates 13 franchised locations and 3 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 2 | 0 | 13 |
| 2020 | 1 | 0 | 14 |
| 2021 | 2 | 0 | 16 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 15 states: CA, CT, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Sedona Taphouse Franchise — FAQ
The total investment to open a Sedona Taphouse franchise ranges from $1,233,500 to $2,406,320, per their Franchise Disclosure Document. This includes the initial franchise fee of $35,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Sedona Taphouse charges a royalty fee of 4% of Gross Sales of gross sales, plus a 1% of Gross Sales contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Sedona Taphouse Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Sedona Taphouse to ensure you have the most up-to-date version.
Sedona Taphouse does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Sedona Taphouse has been franchising since 2014. The FDD shows an investment range of $1,233,500-$2,406,320, a 4% of Gross Sales royalty, and no Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $35,000 and the total investment ranges from $1,233,500 to $2,406,320 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Sedona Taphouse and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Sedona Taphouse or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com