About Tapville Social Franchise
Tapville Social is an innovative self pour taproom and restaurant franchise offering craft beer, wine, cider, cocktails, and food in a social, technology driven environment.
Franchising since 2019, the brand provides multiple format options including a full taproom, kiosk, or mobile unit, giving owners flexibility in how they bring the concept to market.
The franchise fee ranges from $19,500 to $44,500.
Tapville Social Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $19,500 - $44,500 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1.5% of Gross Sales | National brand fund |
| Total Investment Range | $134,750 – $1,100,000 | Includes build-out, inventory, working capital |
The investment range of $135K–$1.1M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Sales) and marketing fee (1.5% of Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $44,500 | $44,500 |
| Travel and Living Expenses While Training | $0 | $1,500 |
| Real Estate Rent Deposits and Pre-Paid Expenses | $6,000 | $24,000 |
| Furniture, Fixtures, and Equipment | $100,000 | $175,000 |
| Construction of Leasehold Improvements | $365,000 | $623,500 |
| Inventory and Supplies | $15,000 | $23,000 |
| Business Licenses and Permits | $5,000 | $25,000 |
| Insurance (3 months) | $3,000 | $5,000 |
| Grand Opening Advertising | $3,000 | $5,000 |
| Architectural/Engineering | $10,000 | $20,000 |
| Computer, POS System Technology Equipment | $5,000 | $10,000 |
| Technology Equipment | $70,000 | $90,000 |
| Signage | $5,000 | $7,000 |
| Accountant and Attorney Fees | $750 | $1,500 |
| Additional Funds (3 months) | $40,000 | $60,000 |
| Technology Package | $70,000 | $90,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | The greater of 30% of the initial franchise fee at the time of your purchase of this franchise or 10% of the sale price |
| Renewal Fee | 20% of franchise fee at the time the initial Franchise Agreement was signed |
| Technology Fee | Approximately $350 - $1,500 monthly |
| Audit Fee | Cost of inspection plus the amount of the underpayment plus interest (lesser of 1.5% per month or highest commercial contract interest rate allowed by law) |
| Insufficient Funds | $75 |
| Management Fee | $250 per person per day (plus other costs and expenses) |
| National Franchise Convention Fee | $500 Annually |
| Additional Opening Assistance | Our then current standard rates plus our costs |
| Retraining Fee | Our then current standard rates or $250 per trainee per day, whichever is greater |
| Refurbishment of the Equipment | At least $15,000 (Every fifth year) |
| Testing of Products or Approval of new Suppliers | Not to exceed $1,000 |
| Insurance | You must reimburse our costs |
| Indemnification | Will vary |
| Cost of Enforcement | All costs, including reasonable attorneys’ fees |
| Marketing Service – Brick-and-Mortar | $2,000 ad spend, 15% ad spend fee, additional text marketing and email marketing usage fees may apply (Monthly) |
| Marketing Service – Kiosk | $300 ad spend, 15% ad spend fee, additional text marketing and email marketing usage fees may apply (Monthly) |
| Marketing Service – Mobile Unit | $400 ad spend, 15% ad spend fee, additional text marketing and email marketing usage fees may apply (Monthly) |
| Management Services | Management Services: $5,000 monthly and 5% of “free cash flow”; Accounting Services: $600 monthly; Event Booking Services: $10 per web-based booking, $75 per contract-based booking, and 8% service fee on all booked business on the contract value (As incurred) |
| Email Access | $9 per email address (Monthly) |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately three (3) weeks prior to opening, including up to one week at corporate location and field training at franchisee's territory. Franchisor also sends training personnel for up to one week prior to and immediately after Grand Opening for on-site training. |
| Classroom Training | 20 hours (Franchisor’s location) |
| On-the-Job Training | 20 hours (Franchisor’s location) and 80 hours (Franchisee’s location) |
| Training Location | Franchisor's headquarters in Oakbrook, Illinois, or Naperville/Rosemont, Illinois restaurant/kiosk, or another designated franchisor training center. |
| Additional Training | Periodically, franchisees, managers, and/or employees must attend refresher-training programs at a designated location or by webinar, at their expense. Attendance is limited to no more than two in-person sessions per calendar year, not exceeding four full days collectively. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | Yes |
| Territory Size | The lesser of a 3-mile radius from your Tapville Social Franchised Business or a land area with a population of 50,000 people. |
| Description | The licensed Territory is determined by population, competition, traffic patterns, proximity to major roads, demographics, available parking, market penetration, and other conditions. The franchisor retains the right to delineate exact bounds once a primary location is chosen, and the Territory will not be altered due to population changes. The protection is only for the license type selected in the Franchise Agreement, and franchisees may face competition from other franchisees, franchisor-owned outlets, or competitive brands controlled by the franchisor. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Successive terms of 10 years each |
| Renewal Fee | 20% of franchise fee at the time the initial Franchise Agreement was signed |
| Renewal Conditions | Full compliance with Franchise Agreement, capital expenditures for System uniformity, satisfaction of all monetary obligations, no default, timely written notice of intent to renew, signing a current Franchise Agreement (which may have different terms), compliance with current qualifications and training requirements, and signing a general release. |
| Transfer Fee | The greater of 30% of the initial franchise fee at the time of your purchase of this franchise or 10% of the sale price |
| Transfer Conditions | Franchisor has not exercised right of first refusal; all obligations owed to franchisor are paid; franchisee and transferee sign a general release; prospective transferee meets business and financial standards; transferee and all owners sign current Franchise Agreement; franchisee provides copies of all transfer-related contracts; transferee or owners agree to be personally bound; franchisee guarantees transferee's performance (if requested); transferee obtains all necessary third-party consents and complies with laws; transferee or all equity owners sign non-competition agreement; and transferee's Owner Operator completes initial training. |
| Termination for Cause | Franchisor may terminate without opportunity to cure for reasons including: failure to timely establish/commence operations; failure to complete training; failure to maintain licenses/permits for >5 days; material misrepresentation; felony conviction; failure to refrain from adverse activities; unauthorized use of confidential information; failure to have required non-compete agreements signed; abandonment for >3 consecutive days; unauthorized transfer of control; failure to assign interest of deceased/incapacitated owner; failure to maintain primary supervision of approved manager for 180 days after death/incapacity; understatement of fees by >2% on 2+ occasions; insolvency; misuse of Marks; failure to submit reports/records or pay fees on 2+ occasions within 12 months; 2+ violations of health/safety law or operating in a hazardous manner; engaging in exclusively reserved franchisor activity; failure to comply with applicable law/regulation within 10 days of notice; 3 breaches of agreement or 3 failures to comply with mandatory specifications/standards/procedures in 12 months; default under any other agreement with franchisor/affiliate. With opportunity to cure (5-30 days) for other defaults like failure to pay amounts due or maintain insurance. |
| Non-Compete Period | 2 years after termination or expiration of the Franchise Agreement |
| Non-Compete Details | Franchisee may not offer competitive business services within 25 miles of any other Business or planned expansion, or any other Franchisor-owned business; or solicit/influence customers, employees, or business associates to compete with or terminate their relationship with the franchisor. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | The Franchisee has no obligation to be the direct, full-time, day-to-day Owner Operator of the Business. If not operating personally, the franchisee must retain a full-time, on-site Manager or Operator. The franchisor retains the right to accept or reject any proposed individual or entity as the Business Manager and may require them to complete initial training. |
| Required Suppliers | Franchisees must purchase advertising material from the franchisor or designated vendors, computer hardware and software designated by the franchisor, certain equipment related to self-service/self-pour standards, furniture, fixtures, and equipment from the franchisor or designated suppliers, proprietary tap systems from an exclusive supplier, proprietary mobile tap trailers from an exclusive supplier (for Mobile Units), guest mobile app services through Affiliate Ultcede, LLC, and signage according to franchisor specifications. |
| Supply Restrictions | Our Affiliate, Tapville Tech, LLC, is the sole approved supplier of tap system and mobile unit equipment. Our Affiliate, Ultcede, LLC is an approved supplier, and the sole approved supplier, of certain technology features including customer gift card balance management and storage. Franchisees are not permitted to sell their tap system or mobile unit to anyone other than the franchisor. Upon expiration or termination, the franchisor has the right to buy back the tap system or mobile unit, and franchisees are not permitted to use them for any purpose whatsoever. |
| Franchisor Revenue from Suppliers | As of December 31, 2021, the franchisor received $9,063 in rebates/referral fees (0.89% of total revenues) from required purchases or leases. Additionally, the franchisor or its affiliates received $580,103 (57.3% of total revenues) from equipment sales and related sales to franchisees during the previous fiscal year. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or obligation. |
Tapville Social Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Tapville Social Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Tapville Social System Growth
Tapville Social currently operates 3 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 |
|---|---|---|---|
| 2019 | 1 | 0 | 3 |
| 2020 | 0 | 0 | 3 |
| 2021 | 3 | 1 | 5 |
Transfers: 0 | Closures: 1
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by SMITH, BUZZI & ASSOCIATES, LLC for year ending December 31.
Tapville Social Franchise — FAQ
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