How Much Does a Captain D's Franchise Cost?

Captain D’s does not have one universal startup figure. The Captain D’s, LLC 2026 Franchise Disclosure Document lists four separate U.S. Item 7 ranges: $662,000–$1,040,500 for an inline restaurant, $752,000–$1,185,500 for an endcap restaurant with drive-through, $1,325,000–$1,638,800 for the 32-seat prototype, and $1,453,000–$1,862,100 for the 44-seat prototype.

Capital snapshot

Sources: 2026 Captain D’s FDD, Item 5, pp. 4–6; Item 6, pp. 6–8; Item 7, pp. 8–11. Financial qualification questions: official franchise website, checked July 14, 2026.

The 2026 Item 7 totals differ primarily because the building and leasehold-improvement range, equipment package, computer system, and training assumptions change by prototype. The inline and endcap formats are not interchangeable with the 32-seat and 44-seat freestanding prototypes.

Complete Item 7 line-item comparison

The tables keep each prototype’s cost contract separate while dividing the disclosure into premises and systems, then pre-opening and working capital. Real Estate is outside the totals: the FDD excludes site selection, land purchase or lease, land preparation, landscaping, other land improvements, and associated financing costs.

Source: 2026 Captain D’s FDD, Item 7, pp. 8–10. The official totals are preserved; no midpoint or blended “typical” amount has been created.

Each Item 7 total includes the Franchise Fee, building or leasehold work, training, equipment, Computer Systems, opening Inventory, Miscellaneous Opening Expenses, Insurance, and Additional Funds for three months. Real Estate and related land or financing costs are outside the disclosed total.

Sources: 2026 Captain D’s FDD, Item 7, pp. 8–10; Item 11, pp. 22–24. The official fees and investment summary also displays the current website line-item range, but the format-specific FDD tables control the analysis above.

The standard $35,000 Franchise Fee is ordinarily split into two non-refundable payments, while most third-party development costs are paid as agreed or incurred. The required Computer Systems are the unusual timing item because their purchase price is included in Item 7 but due after opening.

1. Disclosure period before payment The FDD states that a prospect must receive the disclosure document at least 14 calendar days before signing a binding agreement or paying Captain D’s or an affiliate. The federal disclosure framework is set out in 16 CFR Part 436.
2. Development Agreement The standard Development Fee is $17,500 for each restaurant scheduled for development—one-half of the standard Franchise Fee. Item 7 also estimates $1,000 for legal review, producing a one-restaurant Development Agreement total of $18,500. Each additional scheduled restaurant adds $17,500.
3. Site acceptance and Franchise Agreement After Captain D’s accepts the site, the franchisee signs the Franchise Agreement and ordinarily pays the remaining $17,500 before construction starts. The Development Fee is credited toward the $35,000 Franchise Fee.
4. Construction and pre-opening purchases Building and Leasehold Improvements, Equipment, Training Expenses, Insurance, deposits, professional fees, and other supplier costs are paid to third parties as agreed or incurred. Opening Inventory is due before opening. The FDD estimates 180–365 days from payment of a one-unit Development Fee to opening, depending on site, lease, financing, permits, construction, weather, and delivery conditions.
5. Opening and first three months Computer Systems become due after opening. Additional Funds are then used during the first three months. Royalty and advertising-related payments follow the Item 6 schedule; the National Advertising Program contribution has no obligation for a new restaurant’s first four weeks.

At standard pricing, the new-restaurant Item 7 amount paid directly to Captain D’s is $60,000–$69,100: the $35,000 Franchise Fee plus the format-dependent $25,000–$34,100 Computer Systems purchase. Incentives or state deferrals may alter the amount or timing actually collected.

Sources: 2026 Captain D’s FDD cover; Item 5, pp. 4–6; Item 7, pp. 8–10; Item 11, pp. 18 and 22–24.

The continuing obligations are the Royalty Fee, Advertising Fee, location-dependent Advertising Marketing Contribution, Local Restaurant Marketing Expenditures, and monthly point-of-sale and computer-based training-system support. The table states the disclosed rate, timing, and current suspension where applicable.

Source: 2026 Captain D’s FDD, Item 6, pp. 6–8; Item 11, pp. 18–23. Percentage fees are stated only on the disclosed gross-sales basis and are not converted into estimated annual dollars.

What triggers conditional charges?

Item 6 also creates charges that apply only when a specific event occurs. They should not be added automatically to the opening total, but they can become material later.

• Opening Team Travel and Lodging: the franchisee reimburses travel and lodging above the $8,000 amount paid by Captain D’s.
• Product or Supplier Approval: actual out-of-pocket costs, estimated not to exceed $1,000, when a franchisee requests approval of an unapproved product or supplier.
• Operating Personnel: costs incurred by Captain D’s, estimated not to exceed $2,500 per month, if the restaurant is not operated to system standards.
• Audit Expenses: actual out-of-pocket costs, estimated not to exceed $3,500, if gross sales are understated by 2% or more.
• Interest: the highest rate permitted by state law, capped at 18%, on overdue amounts.
• Enforcement, Collection, Attorney, and Indemnification Costs: variable amounts tied to noncompliance, collection, or claims arising from restaurant operations.
• Early termination damages: the Franchise Agreement formula uses average monthly gross sales for the prior 36 months, the standard Royalty Fee and Advertising Fee rates, and the lesser of 36 months or the remaining term, subject to applicable law.

Yes. Item 5 discloses a Development Incentive Program for qualifying new restaurants under Development Agreements signed after April 17, 2026 and before May 1, 2028, plus a separate Veterans Franchise Program for a veteran’s first restaurant. Eligibility and final contract language control.

If a qualifying restaurant opens within 60 days of its scheduled opening date, Item 5 reduces the Royalty Fee to 2.25% of gross sales for the first 12 months. The standard rate applies afterward unless the Franchise Agreement states otherwise.

Item 5 also reports that Captain D’s reduced one Development Fee by 100% during the prior fiscal year. That historical exception is not disclosed as a generally available program or contractual right.

Captain D’s current official franchise-site form asks whether a candidate has at least $350,000 in liquid assets and at least $1,500,000 in net worth. Those screening figures are distinct from the Item 7 investment range: liquid assets are funds that can be accessed, net worth includes assets minus liabilities, and neither figure replaces the format-specific startup budget.

Sources: official Captain D’s franchise qualification form, checked July 14, 2026; 2026 Captain D’s FDD, Item 1, p. 1, and Item 10, p. 15. The current qualification questions appear on the official franchise qualification form.

Real Estate, conversions, technology upgrades, required-supplier purchases, renewal, transfer, and remodel obligations can materially change the capital plan outside the basic Item 7 total. The amount depends on the site, transaction, restaurant condition, market, and contract event.

Later-event cost triggers

The Franchise Agreement and Item 7 create several material obligations that may occur years after opening or during a transaction.

• Transfer Fee: one-quarter of the then-current initial franchise fee, currently $8,750 per restaurant, plus Captain D’s expenses; due before the transfer closes.
• Renewal Fee: currently $8,750, but capped at 25% of the then-current Franchise Fee; due when the renewal Franchise Agreement is signed.
• Remodel on renewal or assignment: $110,000–$200,000, potentially including signs, exterior trade dress, menu boards, dining-room finishes, broiler and related equipment, parking-lot work, and landscaping.
• Technology modifications and upgrades: the franchisee must implement required changes at its own cost; the Franchise Agreement contains no contractual cap on frequency or cost.
• Required suppliers: franchisees must buy virtually all food and supplies from McLane Foodservice Distribution, Inc. or Bassham Wholesale Egg Company, Inc., as designated by location. Item 8 estimates specified or designated purchases at about 35%–45% of establishment purchases and about 35% of operating purchases.
• Company-owned restaurant purchase: price depends on the restaurant, assets, trade area, and other factors. Excluding real estate, the FDD says the cost generally should not exceed the applicable new-restaurant total range, and the Franchise Fee remains due.

Sources: 2026 Captain D’s FDD, Item 6, pp. 7–8; Item 7, pp. 10–11; Item 8, pp. 11–14; Item 11, pp. 22–23; Item 17, pp. 32–35.

A defensible budget should begin with the correct Item 7 prototype, then add site-specific Real Estate and financing costs without double-counting Additional Funds or the post-opening Computer Systems payment. The following checks address the largest unresolved obligations.

• Confirm the exact prototype and site criteria in writing, including whether the project is 44-seat, 32-seat, endcap with drive-through, inline, or a conversion.
• Price Real Estate separately, including rent or purchase, land preparation, landscaping, civil work, financing, and any site-impact analysis required for approval.
• Reconcile the construction and equipment bids to the Item 7 category definitions and check whether union labor, local code, health requirements, or a conversion changes the scope.
• Keep Additional Funds inside the total; the $40,000–$90,000 amount already covers the first three months and includes staff payroll but excludes owner compensation.
• Document the applicable incentive, development schedule, veteran eligibility, and any state payment deferral in the signed agreements rather than relying on a headline fee.
• Model continuing obligations by their disclosed basis: weekly gross-sales percentages, monthly technology support, required marketing spending, supplier restrictions, and event-triggered fees.
• Reserve for later contract events, especially the $110,000–$200,000 remodel range, renewal and transfer fees, and uncapped required technology upgrades.