Pedal Pub Franchise FDD, Profits & Costs (2025)
Pedal Pub is a unique franchise that offers community members and tourists an opportunity to socialize, engage in light physical activity, and explore city neighborhoods through guided tours on custom-built party bikes.
Founded in 2007 in Minneapolis, Minnesota, Pedal Pub introduced the first party bike to the United States, pioneering an entirely new industry. The company is headquartered in Saint Paul, Minnesota.
In 2018, Pedal Pub began franchising, expanding its distinctive concept across North America. Each Pedal Pub bike is designed to seat 16 guests and a pilot, facilitating interactive tours to popular local bars and attractions. The bikes are manufactured by Het Fietscafe, the original party bike manufacturer in Amsterdam, ensuring high quality and durability.
Pedal Pub differentiates itself from competitors through its strong emphasis on community engagement and support for local businesses. By partnering with local establishments, Pedal Pub fosters revenue opportunities for both its franchisees and neighboring businesses, creating a mutually beneficial ecosystem.
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Initial Investment
How much does it cost to start a Pedal Pub franchise? It costs on average between $115,000 – $281,000 to start a Pedal Pub franchised facility.
This includes costs for bike procurement, customization, marketing materials, and initial operating expenses. The exact amount depends on various factors, including the city of operation, local regulations, and whether the franchisee chooses to lease or purchase storage and operational space.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $19,900 – $39,900 |
| Equipment | $67,145 – $151,596 |
| Rent | $500 – $6,500 |
| Merchandise | $500 – $2,000 |
| Supplies | $1,000 – $2,000 |
| Travel and Living Expenses While Training | $1,000 – $3,000 |
| Technology and Software Expenses | $2,100 – $5,200 |
| Opening Advertising | $5,000 – $15,000 |
| Insurance | $1,000 – $2,000 |
| Legal and Accounting | $1,000 – $3,000 |
| Business Licenses and Permits | $500 – $1,000 |
| Additional Funds – 3 Months | $15,000 – $50,000 |
| Total | $114,645 – $281,196 |
Average Revenue (AUV)
How much revenue can you make with a Pedal Pub franchise? A Pedal Pub franchised business makes on average $468,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $236,000 yearly revenue for similar other recreation franchises. Below are a few Pedal Pub competitors as a comparison:
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We have compiled the list of the top 400 franchises across 9 industries. Download the report below.
Pedal Pub Franchise Disclosure Document
Frequently Asked Questions
How many Pedal Pub locations are there?
As of the latest data, Pedal Pub operates a total of 21 locations, consisting of 20 franchised units and 1 company-owned unit. The franchise continues to expand, offering entrepreneurs the opportunity to bring its unique social and experiential business model to new markets.
What is the total investment required to open a Pedal Pub franchise?
The total investment required to open a Pedal Pub franchise ranges from $115,000 to $281,000.
What are the ongoing fees for a Pedal Pub franchise?
Pedal Pub franchisees are subject to a royalty fee ranging from 7% to 10% of gross sales, which contributes to continuous support and development within the franchise system.
Additionally, franchisees are required to pay a marketing fee of 2% of gross sales, allocated towards national and regional advertising campaigns to enhance brand visibility and attract customers.
What are the financial requirements to become a Pedal Pub franchisee?
To qualify as a Pedal Pub franchisee, candidates are typically required to have a minimum net worth of $300,000 and liquid capital of at least $75,000. These financial prerequisites ensure that franchisees possess the necessary resources to effectively establish and operate their Pedal Pub business.
How much can a Pedal Pub franchise owner expect to earn?
The average gross sales for a Pedal Pub franchise are approximately $0.47 million per location. Assuming a 15% operating profit margin, $0.47 million yearly revenue can result in $71,000 EBITDA annually.
Who owns Pedal Pub?
Pedal Pub franchise is owned by PP Development LLC, headquartered in Saint Paul, Minnesota. The company was founded in 2007 by two Minnesotan entrepreneurs who introduced the first party bike to the United States.
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