Captain D’s Franchise Costs, Fees & FDD

Year Business Began: 1969

Franchising Since: 1969

Headquarters: Nashville, Tennessee

Estimated Number of Units: 540

Franchise Description: Captain D’s, LLC is the franchisor. The franchisor is offering the rights to develop and franchises to operate one or more Captain D’s restaurants. Captain D’s restaurants offer freshly-prepared, high-quality seafood in a fast casual service environment. The menu features the franchisor’s signature hand-battered, fried fish. Captain D’s restaurants also offer premium-quality grilled, baked or broiled fish, as well as shrimp, chicken and home-style side dishes, including corn, baked potatoes, okra, green beans, coleslaw, tossed salads, hushpuppies, and selected desserts.
Training Overview: The training programs include computer-based and on-the-job training. Training takes place between one to four months before the opening of the franchisee’s first restaurant. Franchisees must complete each task to the franchisor’s satisfaction during training and they must achieve a score of 85% or higher on all tests. Training is mandatory for any new franchisee. The franchisor requires that at all of the franchisee’s management personnel attend and complete the training program before the restaurant opens. The training program consists of four different programs. Passive owners must complete a one-week program, which consists of a condensed version of positional training, management training, and advanced management training. Multi-unit operators must complete a four-week program, which covers basic training, management training, and advanced management training. All general managers and owner operators must complete a minimum six-week program, which covers those same training modules. Finally, each assistant manager must complete a four-week program, which covers basic training, positional training, and management training modules. The franchisor will provide franchisees, at its expense, with an opening team to assist in the opening of the restaurant and the initial training of restaurant employees. The franchisor also makes additional training available and encourages, but does not require, franchisees to attend additional training.

Territory Granted: Franchisees do not receive an exclusive territory under a Franchise Agreement. Franchisees may face competition from other franchisees, from restaurants that the franchisor owns, or from other channels of distribution or competitive brands that the franchisor controls. The franchisor does grant a protected area to each franchisee. The protected area consists of a circle having a two-mile radius, with the front door of the Captain D’s restaurant as the center. However, for restaurants located in downtown or urban areas, the franchisor reserves the right to designate a smaller protected area. The franchisor may not establish a company-owned or other franchised Captain D’s restaurant within the protected area. 

Obligations and Restrictions: Franchisees are required to participate personally in the direct operation of the franchised restaurant. If franchisees operate as a corporation or other business entity, they or a supervisory person with at least a 10% ownership interest (or an acceptable ownership vesting plan) and approved by the franchisor must participate personally in the operation of the franchised restaurant. Franchisees or their designated operator must attend and satisfactorily complete the initial training program conducted. Franchisees must offer for sale and sell only those products and services that the franchisor has approved. Franchisees may not offer for sale any products or perform any services that the franchisor has not authorized previously in writing.

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

Financial Assistance: Neither the franchisor nor any of its affiliates offer, directly or indirectly, any financing arrangements to its franchisees. The franchisor does not guarantee a franchisee’s notes, leases or other obligations. The franchisor has a Veterans Franchise Program available to veterans of the United States armed forces, who own a controlling interest in any entity that desires to become a franchisee and who otherwise meet the minimum requirements (financial and otherwise) for the award of a franchise.

Estimated Initial Investment

Name of Fee	Low	High
Franchise Fee	$35,000	$35,000
Real Estate	Varies
Building and Leasehold Improvements	$550,000	$815,000
Training Expenses	$25,000	$46,000
Equipment	$201,600	$292,100
Computer Systems	$25,000	$34,100
Inventory	$6,000	$8,000
Miscellaneous Opening Expenses	$5,000	$9,000
Insurance	$11,000	$25,000
Additional Funds (3 Months)	$40,000	$90,000
ESTIMATED TOTAL (not including real estate)	$898,600	$1,354,200

Other Fees

Type of Fee	Amount
Royalty	4.5% of gross sales.
Advertising Fee	1% of gross sales (subject to an increase to a maximum of 2%).
Local Restaurant Marketing Expenditures	2% of gross sales, less any advertising cooperative contribution in excess of 2% of gross sales. (Note: As a result of the COVID-19 Pandemic, the franchisor has suspended its local marketing requirement until further notice.)
Advertising Marketing Contribution	Maximum of 0.75% or 1.25% of gross sales depending on the location of the restaurant.
Point-of-Sale Computer-Based Training Systems Maintenance and Support	Up to $236 per month, plus equipment repair and shipping costs.
Opening Team Travel and Lodging Expenses	Travel and lodging expenses exceeding $8,000.
Product or Supplier Approval	Will not exceed actual the franchisor’s out-of-pocket costs, estimated not to exceed $1,000.
Operating Personnel	Costs incurred by the franchisor, estimated to not exceed $2,500 per month.
Enforcement Costs, Collections Costs and Attorney’s Fees	Will vary under circumstances.
Indemnification Costs	Will vary under circumstances.
Interest	Highest rate permitted by state law up to maximum of 18%.
Audit Expenses	Will not exceed the franchisor’s out-of-pocket costs, estimated not to exceed $3,500.
Transfer Fee	One-quarter of the then current initial franchise fee (currently $8,750 per restaurant) plus other expenses incurred by the franchisor.
Renewal Fee	The then current renewal fee (currently, $8,750), but not to exceed 25% of the then current franchise fee.

The above information has been compiled from the FDD of Captain D's. Year of FDD: 2025.
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