If you want to open a bar under an established name, you will hear two words again and again: franchising and licensing. They sound similar, and both let you borrow the strength of a recognized brand. But for an owner, the day-to-day reality of each model is very different. This guide breaks down what changes in control, cost structure and independence, so you can decide which path fits the way you want to run your venue.
What a franchise usually looks like
A traditional franchise is a long-term relationship. The franchisor typically controls a detailed operating system: approved suppliers, mandated build-outs, required software, marketing contributions and regular inspections. In exchange, the owner gets a playbook and ongoing support.
That structure suits people who want to be told exactly how to operate. The trade-off is that the franchisor shares in your revenue for as long as the agreement lasts, usually through recurring royalties and fees, and many agreements come with fixed terms that must be renewed on the franchisor’s conditions.
What brand licensing means
Brand licensing is narrower and simpler. A licensor grants you the right to use defined assets, such as a name, logo, recipes, menus and media, and you run the business yourself. You are not buying into a management system; you are buying the right to use proven brand assets.
With SHOTS, that grant works on a pay-once basis: a single one-time payment gives you permanent rights to the SHOTS brand, recipes, menus and other assets. There are no royalties, no terms and no renewals. Pay once, yours for good.
Control and independence
Under a license, the operating decisions are yours: staffing, hours, pricing, promotions, vendors and how you grow. That independence is the main reason experienced operators favor licensing. You keep the flexibility to adapt to your market instead of waiting for corporate approval.
Independence also means responsibility. SHOTS licensees operate independently and keep 100% of the profits, and the model doesn’t include ongoing management or marketing support. Instead, licensees get access to more than a decade of SHOTS digital materials through a cloud-based support model.
How the money flows
The biggest structural difference is what happens after opening. In a royalty model, a share of your sales leaves the business every period, whether it is a great month or a slow one. In a one-time license, there is no ongoing payment to the brand, so improvements in your sales stay in your business.
That predictability makes planning easier. You can model cash flow around your own costs (rent, payroll, product, utilities) without a revenue share layered on top.
Who each model suits
Franchising can be a fit for first-time owners who want heavy hand-holding and accept recurring fees as the price of support. Licensing fits operators who already understand bar operations, or who will hire people who do, and who want brand power without giving up control.
It is also a strong option for owners of existing venues who want to refresh and rebrand. Rather than starting from zero, they bring a recognized name, menus and look into a space they already know.
How to compare offers side by side
Put every option you’re considering into one simple table. Down the left side, list the questions that matter: which assets you receive, how long the rights last, what you pay up front, what you pay every month, who sets your prices and suppliers, who controls marketing, and what happens if you want to expand, relocate or sell. Across the top, list each brand. Fill in every cell from the actual agreement, not from a sales conversation.
Next, model the cost of each option over the period you expect to own the business, not just the first year. A revenue share that looks small on a single month can become one of your largest expenses over many years of growth. A one-time license front-loads the commitment and then disappears from your monthly statement. Also weigh the value of support you would actually use. If you already know how to hire, buy, schedule and promote, paying indefinitely for a system you don’t need is a poor trade. If you don’t, factor in the cost of hiring an experienced general manager. With a clear table and a long-term model, the right choice usually becomes obvious.
Common mistakes to avoid
- Assuming every brand deal works the same way. Read exactly what you’re buying the rights to and what ongoing obligations exist.
- Underestimating the operating know-how a license expects. Independence means you or your team must know how to run a bar.
- Ignoring the long-term cost of revenue sharing when comparing options side by side.
- Skipping legal review. A hospitality attorney should read any agreement before you sign.
Quick checklist
- List the brand assets you need: name, recipes, menus, media, merchandise.
- Compare ongoing payments under each option over the life of your business.
- Decide how much operating control you want to keep.
- Confirm how territory is defined and protected.
- Have your attorney and accountant review the agreement.
Frequently asked questions
Is a bar brand license the same as a franchise?
No. A franchise usually includes an operating system, ongoing fees and fixed terms. A license grants rights to defined brand assets while you run the business. With SHOTS, one one-time payment gives permanent rights with no royalties.
Do SHOTS licensees pay royalties?
No. There are no royalties and no ongoing fees. Licensees keep 100% of the profits their bar generates.
Can I sell my bar later?
Talk with the licensing team and your attorney about how the rights apply to your situation before you sign, so your long-term plans are covered.
The bottom line
Franchising sells a system; licensing grants rights. If you have the experience to run a bar and want brand power without sharing your revenue, a one-time license is worth a close look.
Where SHOTS fits
SHOTS is a nightlife brand built over more than a decade on quality, ambiance and unforgettable experiences. Through brand licensing, one one-time payment gives you permanent rights to the SHOTS brand, recipes, menus and other brand assets, with no royalties, no terms and no renewals. Pay once, yours for good. Licensees operate independently and keep 100% of the profits. Every SHOTS location is unique. We strive to save startup costs for owners wherever possible, without ever sacrificing the SHOTS experience.
The SHOTS rights include:
- The right to use the SHOTS brand name in your territory.
- Access to the proven SHOTS recipes and menus.
- Digital media rights and more than a decade of SHOTS digital materials.
- Rights to produce branded merchandise.
- A location page on shotsbar.com/.
Ready to talk about your market? Request licensing info and our licensing team will reach out. Each licensing deal is tailored to fit your territory, so the first conversation is about your market, your plans and how SHOTS could work there.
