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Captain D’s Franchise Costs & Fees

Date of Incorporation: 1969
Franchising Since: 1969
Headquarters: Nashville, Tennessee

Business Description: Captain D's, LLC owns, operates, and franchises single unit and multiple unit seafood restaurants in the United States. Its menu includes fish dishes and seafood, including freshly prepared entrees, hand-battered fish fillets, grilled fish, and shrimps; chicken, family and kids’ meals, desserts, beverages, Southern-style sweet tea, and regional seafood favorites. The company also operates restaurants in military bases around the world.

Franchise Offer: Captain D’s is offering single and multiple unit franchises to operate Captain D’s restaurants at an authorized location under the terms of the operating agreement (also referred as the franchise agreement).

Financial Assistance: Neither Captain D’s nor any of Captain D’s affiliates offer, directly or indirectly, any financing arrangements to our franchisees. Captain D’s does not guarantee a franchisee’s notes, leases or other obligations.

Training and Assistance: Before franchisees open a restaurant, Captain D’s also will provide franchisees with assistance in location selection, assistance in ordering equipment, assistance in establishing local suppliers, and on-location construction inspection. However, Captain D’s does not have to provide those services. Captain D’s currently does not provide pre-opening local media advertising for newly-franchised restaurants, but will supply advertising materials for pre-opening advertising for new restaurants upon request and recommend that franchisees take advantage of those materials.

Training takes place before the opening of the franchisee’s first restaurant, which must happen within 12 months after the franchisee signs the Franchise Agreement. Franchisees will work in a certified training restaurant already in operation. Training is mandatory for any new franchisee. Captain’s requires that at all of the franchisee’s management personnel attend and complete the training program before the restaurant opens. Additional training is made available, but not required.

Territory: Franchisees do obtain the right to develop and operate a certain agreed upon number of Captain D’s restaurants within a specified area. The franchisor determines the size of the specified area covered by a Development Agreement, which will vary depending on factors like population and ability to develop restaurants. As long as that agreement remains in effect, the franchisor may not establish another Captain D’s restaurant, either company-owned or franchised, within the area covered by the Development Agreement.

Term of Agreement and Renewal: The length of the franchise term is 20 years. If in good standing, the franchisee can renew for an additional period of 20 years. Captain D’s will require that the franchisee sign a new Franchise Agreement (which may include materially different terms and conditions).

Obligations and Restrictions: Franchisees are required to participate personally in the direct operation of the franchised restaurant. If the franchisee is a business entity, the franchisee is required to have one owner who is responsible for overseeing the general management of the day-to-day operations of the location. The franchisee or designated operator must attend and satisfactorily complete the initial training program conducted.

Estimated Number of Units: 514

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee Lump Sum
$25,000
---
Initial Training Fees and Costs $20,000 $40,000
Building Construction and Leasehold Improvements $420,000 $500,000
Equipment $222,000 $280,000
Inventory $6,000 $8,000
Computer Systems $22,000 $26,000
Miscellaneous Opening Expenses $5,000 $9,000
Insurance $11,000 $25,000
Additional Funds (3 months) $40,000 $90,000
ESTIMATED TOTAL $771,000 $1,003,000
Other Fees
Type of Fee Amount
Royalty 4.5% of Gross Sales.
Advertising Fee 1.1% of Gross Sales (subject to increase of maximum of 2%)
Local Restaurant Marketing Expenditures 2% of Gross Sales, less any advertising cooperative contribution in excess of 2% of gross sales.
Advertising Cooperative Contribution Maximum of 4% of Gross Sales.
Point-of-Sale, Computer-Based Training Systems, Maintenance and Support Up to $236 per month, plus equipment repair and shipping costs.
Product or Supplier Approval Will not exceed actual out-of-pocket costs, estimated not to exceed $1,000
Operating Personnel Cost incurred by Franchisor, estimated to not exceed $2,500/month.
Costs and Attorney’s Fees Will vary under circumstances.
Interest Highest rate permitted by state law up to maximum of 18%
Transfer Fee The then-applicable transfer fee, currently $5,000 for each Territory transferred.
Audit Expenses Will not exceed out-of-pocket costs, estimated not to exceed $3,500
Transfer Fee One-quarter of the then current initial franchise fee (currently $6,250 per restaurant) plus other expenses incurred by us.
Renewal Fee The franchisor’s then current renewal fee (currently, $12,500), but not to exceed 50% of the then current franchise fee.

The above information has been taken from the FDD of Captain D's. Year of FDD: 2015

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