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SUBJECT DOSSIER · FDD 2026

JL Beers Franchise

Cost, fees, owner earnings, closure rate and litigation for a JL Beers franchise — pulled from the franchisor's own public FDD (2026), not its sales material.

Quick Service Restaurants · disclosure-honesty grade · from public state filings

Disclosure honesty

C
Transparency 3 / 5

JL Beers discloses earnings (Item 19) — but the grade is how honestly. We graded it C.

Outlets10
Disclosed lawsuits0
Closure signals0 ceased
Investment
$1,223,000–$3,308,000
Total fees
4.5% of sales
Outlets
10
Closure signals
0 ceased, 0 terminated
Lawsuits
0

What their own earnings claim actually says

Average net sales $1.44M (2025) from 10 restaurants (7 company-owned, 3 franchised). Range $925K-$1.79M. Median $1.48M. Unaudited data. 50% met/exceeded average.

What a JL Beers franchise actually costs to run

FeeDisclosedWhere it comes from
Initial franchise fee$50,000Item 5 — paid up front, before you open
Royalty4% of gross salesItem 6 — charged on revenue, not profit
Advertising fund0.5% of gross salesItem 6 — brand marketing, spent at the franchisor's discretion
Total recurring fees4.5% of gross salesBefore rent, labor, food or debt service
Total initial investment$1,223,000 – $3,308,000Item 7 — franchisor's own low/high estimate

Affiliate supplier markup ($4.2K-$5K). Production fee 0.5% Net Sales. Transfer fee 50% initial fee.

Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.

JL Beers system size and owner turnover

Total outlets10
Ceased operations0
Terminated by franchisor0
Transferred to new owners0
Closure rate0.0% of outlets

No recent unit closures, terminations, or transfers across 2023-2025 period.

From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.

Is JL Beers worth it? — how it compares to 164 similar franchises

Ongoing fees4.5% of saleslower than most (median 8%)
Startup costfrom $1,223,000pricier than 86% of peers
Disclosure honestyGrade Ctypical for the category
Closure rate0.0% of outletsbetter than most (median 1.3%)
Disclosed lawsuits0fewer than most

Benchmarked against every quick service restaurants franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.

◤ CLASSIFIED · ITEM 19 RECONSTRUCTED

Owner take-home for a JL Beers

The franchisor's framing: Average net sales $1.44M (2025) from 10 restaurants (7 company-owned, 3 franchised). Range… We reconstruct what an owner actually keeps, from their own FDD.

LOW
MEDIAN
HIGH

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JL Beers franchise — frequently asked

How much does a JL Beers franchise cost?
The FDD lists a total initial investment of about $1,223,000–$3,308,000, including a $50,000 initial franchise fee.
How much do JL Beers franchise owners make?
Average net sales $1.44M (2025) from 10 restaurants (7 company-owned, 3 franchised). Range $925K-$1.79M. Median $1.48M. Unaudited data. 50% met/exceeded average. We grade this disclosure C for honesty.
What are the JL Beers franchise fees?
JL Beers' FDD discloses a $50,000 initial franchise fee, a 4% royalty on gross sales, a 0.5% advertising-fund contribution, for roughly 4.5% of gross sales in recurring fees before rent, labor, or debt service. Affiliate supplier markup ($4.2K-$5K). Production fee 0.5% Net Sales. Transfer fee 50% initial fee.
What is the JL Beers franchise profit margin?
JL Beers does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: Average net sales $1.44M (2025) from 10 restaurants (7 company-owned, 3 franchised). Range $925K-$1.79M. Median $1.48M. Unaudited data. 50% met/exceeded average. Recurring fees alone take about 4.5% 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 JL Beers franchise failure rate?
No recent unit closures, terminations, or transfers across 2023-2025 period.
How many JL Beers locations are there?
JL Beers' FDD reports 10 total outlets, with 0 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 JL Beers have complaints or lawsuits?
JL Beers 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 JL Beers franchise worth it?
It depends on the numbers, not the pitch. JL Beers scores C on disclosure honesty, carries about 4.5% of sales in ongoing fees. Get the real owner take-home before you sign.

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Source: MN CARDS 36109-202604-08 (Clean FDD 2026). FranchiseValidate is independent and not affiliated with JL Beers or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.