The vendor opportunity at BrewDog
BrewDog operates 8 BrewPubs in the US, all company-owned as of the 2024 FDD. No franchised units are open yet, so the immediate software market is the franchisor’s own operations. Item 19 includes a financial performance representation, but no average unit volume figure is stated here.
Who controls software purchasing
Item 2 names James Watt (President, Co-Founder), Neil Simpson (Financial Director, CFO and Treasurer), John Graham (Chief Executive Officer), Keith Bennet (Vice President of US Real Estate and Development), and Laura Godsman (Franchise Director). Corporate leadership sets technology standards and approves suppliers. Franchisees must follow those standards.
Tech named in the FDD, and what is actually required
Item 8 designates NCR by NCR Voyix as the sole approved point-of-sale system. Franchisees must use the franchisor’s food safety software, for which the franchisor holds a license and charges an annual fee. The FDD also requires use of designated third-party vendors for gift card and loyalty program services. Item 11 requires franchisees to obtain and use the computer hardware, software, POS system, and related equipment the franchisor periodically specifies, and to upgrade as required, including PCI compliance. Franchisees may not substitute other software for what the franchisor requires.
Procurement, renewals, and timing
Item 8 requires franchisees to buy branded merchandise and glassware from BrewDog Brewing Company, LLC, an affiliate. Beer must come from approved third-party distributors. Draft systems must come from Micro Matic. Other items—food, beverages, furniture, fixtures, brewing equipment, signage, advertising, and gift card/loyalty services—must come from suppliers the franchisor designates or approves. Franchisees may propose suppliers for approval. Initial terms are 10 years, and renewal is available for another 10 years if the franchisee is in good standing, upgrades the BrewPub, signs the then-current agreement, and pays a successor fee.
How to read the BrewDog FDD
The embedded PDF below is BrewDog’s 2024 Franchise Disclosure Document. Item 2 lists officers, Item 8 covers supplier restrictions, Item 11 covers technology and training, Item 17 covers renewal and termination, Item 19 covers financial performance, and Item 20 covers outlets. For a ranked target list of franchise systems, talk to FranCloud.
Ordinary royalty terms
Complete royalty terms are not confirmed.