Barrel House Franchise
Cost, fees, owner earnings, closure rate and litigation for a Barrel House franchise — pulled from the franchisor's own public FDD (2024), not its sales material.
Disclosure honesty
Barrel House discloses earnings (Item 19) — but the grade is how honestly. We graded it D.
What their own earnings claim actually says
One franchised unit (Bloomington, IL) generated $2.125M annual gross sales (2023). Five affiliate-owned units ranged $756K-$2.532M. Cherry-picking: only mature affiliates shown; excludes one affiliate unit; location/size variations noted but limited baseline.
What a Barrel House franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $40,000 | Item 5 — paid up front, before you open |
| Royalty | 5% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 1% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 6% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $540,000 – $1,215,000 | Item 7 — franchisor's own low/high estimate |
5% royalty + 1% marketing fee + $250/mo technology fee. Initial $40K fee. Additional ongoing training/supplemental fees up to $500/day apply.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Barrel House system size and owner turnover
| Total outlets | 7 |
| Ceased operations | 1 |
| Terminated by franchisor | 0 |
| Transferred to new owners | 0 |
| Closure rate | 14.3% of outlets |
One affiliate unit closed 2023. Single franchisee unit with minimal operating history (15 months). Limited system maturity.
From Item 20 of the FDD 2024. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Barrel House worth it? — how it compares to 164 similar franchises
| Ongoing fees | 6% of sales | lower than most (median 8%) |
| Startup cost | from $540,000 | about average (median $481,500) |
| Disclosure honesty | Grade D | less honest than most of the category |
| Closure rate | 14.3% of outlets | worse than 91% of peers |
| Disclosed lawsuits | 0 | fewer than most |
Benchmarked against every quick service restaurants franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Barrel House
The franchisor's framing: One franchised unit (Bloomington, IL) generated $2.125M annual gross sales (2023). Five af… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
Barrel House franchise — frequently asked
- How much does a Barrel House franchise cost?
- The FDD lists a total initial investment of about $540,000–$1,215,000, including a $40,000 initial franchise fee.
- How much do Barrel House franchise owners make?
- One franchised unit (Bloomington, IL) generated $2.125M annual gross sales (2023). Five affiliate-owned units ranged $756K-$2.532M. Cherry-picking: only mature affiliates shown; excludes one affiliate unit; location/size variations noted but limited baseline. We grade this disclosure D for honesty.
- What are the Barrel House franchise fees?
- Barrel House's FDD discloses a $40,000 initial franchise fee, a 5% royalty on gross sales, a 1% advertising-fund contribution, for roughly 6% of gross sales in recurring fees before rent, labor, or debt service. 5% royalty + 1% marketing fee + $250/mo technology fee. Initial $40K fee. Additional ongoing training/supplemental fees up to $500/day apply.
- What is the Barrel House franchise profit margin?
- Barrel House does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: One franchised unit (Bloomington, IL) generated $2.125M annual gross sales (2023). Five affiliate-owned units ranged $756K-$2.532M. Cherry-picking: only mature affiliates shown; excludes one affiliate unit; location/size variations noted but limited baseline. Recurring fees alone take about 6% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the Barrel House franchise failure rate?
- One affiliate unit closed 2023. Single franchisee unit with minimal operating history (15 months). Limited system maturity.
- How many Barrel House locations are there?
- Barrel House's FDD reports 7 total outlets, with 1 that ceased operations in the most recent reporting year and 0 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Barrel House have complaints or lawsuits?
- Barrel House discloses no material litigation in Item 3 of the filing we reviewed. That's a positive signal, though it covers only what the franchisor is required to report.
- Is a Barrel House franchise worth it?
- It depends on the numbers, not the pitch. Barrel House scores D on disclosure honesty, carries about 6% of sales in ongoing fees. Get the real owner take-home before you sign.
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Compare Barrel House to similar franchises
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Source: MN CARDS 31822-202405-06 (Clean FDD 2024). FranchiseValidate is independent and not affiliated with Barrel House or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.