FDD-based startup cost, franchise fee, revenue, profit, SBA default rate, and investment risk signals for World of Beer.
Based on 2019 FDD · 5 filings in corpus
This page is using 2019 FDD source data. Verify the franchisor's current FDD before relying on costs, fees, or Item 19. It is excluded from search indexing until refreshed.
Cost and profit at a glance
Based on FDDIQ's FDD corpus, a World of Beer franchise shows an estimated initial investment of $1.2M – $1.9M. Reported owner economics show $50K. Use the links below to compare the cost, revenue, SBA loan history, and ROI against other franchises before you request the full FDD.
Quick fee read: $50K franchise fee · 6.5% royalty/ad burden. These figures are directional screening data, not a substitute for reading the current FDD and speaking with existing operators.
World of Beer requires a total initial investment of $1.2M to $1.9M (midpoint approximately $1.5M), with an initial franchise fee of $50K. The ongoing fee burden is 6.5% (5% royalty plus 1.5% advertising fund). This is below the industry average of approximately 15.5%, leaving more margin for the operator.
According to Item 19 of the 2019 FDD, the median revenue for World of Beer locations is $1.4M. The implied franchisee EBITDA is approximately $50K, based on the margin assumptions disclosed in the FDD. The estimated cash-on-cash return is 3.3% with a payback period of approximately 30.5 years.
World of Beer operates approximately 40 franchised units. The SBA 7(a) loan default rate of 11.1% is above the franchise industry average of approximately 7.2%, suggesting elevated financial risk for franchisees relying on debt financing.
Prospective franchisees should verify all figures against the most recent FDD, conduct validation calls with multiple existing franchisees, and consult with a franchise attorney before signing any agreement.
Analysis based on 2019 FDD filing. FDDIQ Editorial Team · Methodology
Estimated using sector-average margins. Actual franchise economics vary by location, operator, and market conditions.
Industry averages based on FranchiseIQ corpus benchmarks. ▲ = better than avg, ▼ = worse.
Real lending data from SBA 7(a) loans (2014-2022). 35 loans across 17 states.
Source: SBA 7(a) loan data via FOIA. Default rate = charged-off loans / total originated. Industry avg default rate ~7.2%.
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