About Steelbound Brewery & Distillery Franchise
Steelbound Brewery & Distillery is a unique franchise concept combining craft brewing, spirits distilling, and pub style dining under one roof.
Guests enjoy house brewed beers and distilled spirits alongside a menu of hearty pub fare, with options for dine in and carryout service.
Franchising since 2022 under Steelbound Holdings LLC, the brand requires an initial franchise fee of $50,000.
Steelbound Brewery & Distillery Franchise Cost & Fees
Minimum Investment
$248K
Average Investment
$1.7M
Maximum Investment
$3.2M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $50,000.00 | One-time payment upon signing |
| Royalty Fee | 4% of Gross Revenues of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of Gross Revenues | National brand fund |
| Total Investment Range | $247,500 – $3,184,500 | Includes build-out, inventory, working capital |
The investment range of $248K–$3.2M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (4% of Gross Revenues) and marketing fee (1% of Gross Revenues) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $50,000 | $50,000 |
| Leasehold Improvements | $50,000 | $1,000,000 |
| Real Estate/Rent | $3,000 | $10,000 |
| Utility Deposits | $1,000 | $1,000,000 |
| Furniture, Fixtures & Equipment | $100,000 | $1,000,000 |
| Initial Inventory | $20,000 | $40,000 |
| Insurance | $1,000 | $7,000 |
| Signage | $2,500 | $10,000 |
| Office Equipment & Supplies | $1,000 | $2,500 |
| Pre-Opening Expenses | $5,000 | $20,000 |
| Computer Equipment (Hardware, Software, POS System, etc.) | $1,000 | $2,500 |
| Training | $0 | $2,500 |
| Licenses & Permits | $1,000 | $5,000 |
| Legal & Accounting | $1,000 | $10,000 |
| Grand Opening Advertising | $1,000 | $5,000 |
| Additional Funds – three months | $10,000 | $20,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $25,000 |
| Renewal Fee | $15,000 |
| Technology Fee | $5,000 to $6,000 annually |
| Audit Fee | All costs of inspection and audit (if under-reported Gross Revenues by 3% or more) |
| Local Advertising | $500 per month |
| Regional Advertising Cooperative | Up to $500 per month |
| Late Fees | $100 |
| Interest | 15% per annum |
| Insurance | Amount of premium paid by Stillhouse of Buffalo, LLC, plus 20% |
| Additional Training | variable |
| Relocation Fee | Variable |
| Step-In Right Expenses | Amounts will vary (Franchisee pays 2.5% of total Step-In Costs) |
| Cost of Enforcement | Cost including attorney fees (if franchisor prevails) |
| Indemnification | Cost including attorney fees |
| Sales/Use Taxes | Variable |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Up to eight (8) weeks or less, with initial training lasting 2 weeks before opening. |
| Classroom Training | 7-21 Hours |
| On-the-Job Training | 7-21 Hours |
| Training Location | Ellicottville, New York |
| Additional Training | Franchisor may provide additional onsite training at current rates ($50/hour or $300/day per person plus travel expenses). Additional or replacement initial training attendees cost $300 per day plus travel expenses. National conventions may be required, with travel, lodging, and other costs paid by the franchisee, and a possible per diem fee. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive and Protected |
| Exclusive Territory | Yes |
| Territory Size | Not specified, determined and set forth on a map attached to the Franchise Agreement. |
| Description | Franchisee is granted an exclusive and protected territory to solicit customers and accept orders at their approved Site. The franchisor will not operate or license others to operate within the Territory if the franchisee complies with the agreement. However, the franchisor reserves the right to operate similar businesses outside the Territory, acquire competitive businesses (within or outside Territory), sell services via alternate channels (Internet, direct mail, co-branding), and operate in 'Special Venues' (e.g., malls, sports centers, military bases) within or outside the Territory. Special Accounts (customers not confined to a single territory) are handled by the franchisor, with the first option offered to the franchisee in their territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years |
| Renewal Fee | $15,000 |
| Renewal Conditions | Franchisor must be offering franchises; franchisee must give 6-12 months written notice; franchisee must not be in default and have substantially complied with agreements; franchisee must have right to possession of an approved site; franchisee must refurbish the business to current standards; franchisee must sign the then-current franchise agreement (terms may differ); franchisee must execute a general release (unless prohibited by law); franchisee must comply with current qualification and training requirements. |
| Transfer Fee | $25,000 |
| Transfer Conditions | All accrued monetary obligations to franchisor must be satisfied; transferor's compensation must be subordinated to franchisor's rights; a general release must be signed (unless prohibited by law); transferee must sign a written assumption of obligations; transferee must meet franchisor's educational, managerial, business, moral character, credit rating, aptitude, financial resources standards; transferee must sign a then-current franchise agreement and ancillary agreements; transferee and/or designated manager must satisfactorily complete training. |
| Termination for Cause | Franchisor may terminate if franchisee fails to secure/open a site within prescribed limits; fails training obligations; fails to pay sums due (10 days to cure); is late on vendor payments (>10 days); fails to submit reports/information or comply with agreement on 3+ occasions in 12 months; fails to operate in full compliance; abandons business (>2 consecutive days); sells unauthorized products/services; infringes other territories; fails 2 inspections in 24 months; bankruptcy/insolvency; receiver appointed; loses site possession; fails to comply with laws (10 days to cure); makes unauthorized transfer; business seized/foreclosed; final judgment unsatisfied; violates restrictive covenants; criminal misconduct; knowingly maintains false records/reports or understates gross revenues by >5%; creates threat to public health/safety; or breaches any other provision (30 days to cure). |
| Non-Compete Period | 2 years after termination or expiration |
| Non-Compete Details | During the term of the franchise, franchisee cannot divert business, solicit employees, or own/engage in a competitive business (brewery, distillery, sports bar/pub) without franchisor consent. After termination or expiration, franchisee cannot own/operate/engage in a competitive business within 25 miles of any Steelbound Brewery & Distillery for 2 years, nor solicit clients of the franchised business for 2 years. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Franchisee must maintain a designated full-time manager, approved by the franchisor, who devotes full time and energy to the operation of the Franchised Business and successfully completes the initial training program. This manager does not require an ownership interest. All shareholders, partners, members, and other equity owners of the franchise must personally guarantee all of the franchisee’s obligations and performance under the Franchise Agreement. |
| Required Suppliers | Franchisee must purchase all food, paper products, television and payroll services from designated or approved suppliers/vendors. All equipment, supplies, fixtures, inventory, and products must comply with Steelbound Brewery & Distillery Standards and specifications. Franchisees must use the Toast POS system and employee uniforms must conform to specifications. |
| Supply Restrictions | Franchisor may designate new or different approved suppliers, including itself or affiliates. Franchisees may not contract with alternative suppliers for designated products or services without franchisor approval. The approval process involves submitting samples, quality standards, availability, terms, and conditions of purchase, and potential physical inspection. Franchisor may revoke approval at any time. |
| Franchisor Revenue from Suppliers | Franchisor and its affiliates may collect or receive rebates, allowances, or other consideration from suppliers based on franchisee purchases. Franchisor reserves the right to retain this revenue or contribute it to the National Advertising Fund or return a portion to franchisees. |
Steelbound Brewery & Distillery Franchise Earnings — Item 19
Revenue Range
$192K – $1.5M
Sample Size
2 units
Past financial performance does not guarantee future results. Individual results will vary.
Steelbound Brewery & Distillery Litigation & Risk Flags
Clean Litigation RecordSteelbound Brewery & Distillery 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.
Steelbound Brewery & Distillery System Growth
Total Units
2
Franchised
0
Company-Owned
2
Steelbound Brewery & Distillery currently operates 0 franchised locations and 2 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2017 | 0 | 0 | 0 |
| 2018 | 1 | 0 | 1 |
| 2019 | 1 | 0 | 2 |
| 2020 | 0 | 0 | 2 |
| 2021 | 0 | 0 | 2 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 23 states: CA, CT, FL, GA, HI, IL, IN, KY, LA, MD, MI, MN, NE, NY, ND, RI, SC, SD, TX, UT, VA, WA, WI
Steelbound Brewery & Distillery Franchise — FAQ
The total investment to open a Steelbound Brewery & Distillery franchise ranges from $247,500 to $3,184,500, per their Franchise Disclosure Document. This includes the initial franchise fee of $50,000.00. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Steelbound Brewery & Distillery charges a royalty fee of 4% of Gross Revenues of gross sales, plus a 1% of Gross Revenues contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Steelbound Brewery & Distillery 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 Steelbound Brewery & Distillery to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Steelbound Brewery & Distillery franchise owners report . This is based on a sample of 2 units. Past performance does not guarantee future results.
Steelbound Brewery & Distillery has been franchising since 2022. The FDD shows an investment range of $247,500-$3,184,500, a 4% of Gross Revenues royalty, and includes an 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 $50,000.00 and the total investment ranges from $247,500 to $3,184,500 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 Steelbound Brewery & Distillery and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Steelbound Brewery & Distillery or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com