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Captain D's Franchise ProfileRestaurant Franchises > Quick-Service Restaurants |
How to Start Your Journey with a Captain D's Franchise?
To begin the process of owning a Captain D's franchise, prospective owners should prepare for a comprehensive evaluation process. You will likely start by submitting an initial inquiry to review the brand's qualifications and financial requirements, including a net worth of $1,500,000 and liquid capital of $350,000. Following initial discussions with franchise representatives, you will dive into the details of their seafood-centric business model. The process involves site selection and rigorous training to ensure you can replicate their signature hospitality and quality. Once the franchise agreement is signed and the $35,000 initial fee is paid, you will be on your way to opening a staple of the fast-casual seafood industry.
What Financial Factors Should You Consider for a Captain D's Franchise?
Investing in a Captain D's location requires a total initial investment ranging from $898,600 to $1,354,200. Beyond the startup costs, franchisees must account for ongoing expenses, including a 4.5% royalty fee and a 1.10% marketing fee based on gross sales. Data from recent years shows a stable corporate presence with 293 company-owned units, while franchised units have remained consistent at approximately 237 locations. While the median annual revenue per unit is reported at $1,500,000, it is essential to conduct thorough due diligence and consult with financial advisors to understand how these figures and the projected 122-month investment payback period fit into your long-term business goals.
Why Might a Captain D's Franchise Be a Strong Opportunity?
Captain D's has carved out a unique niche in the quick-service restaurant industry by focusing on high-quality seafood at affordable prices. With a business model that has supported over 500 total units across the country, the brand offers a proven alternative to the saturated burger and pizza markets. New franchisees can benefit from a system that has demonstrated a remarkably fast breakeven time of just 3 months in some instances. The brand provides extensive support in operations and marketing, helping you leverage their decades of experience to serve up everything from batter-dipped fish to grilled shrimp in your local community.
Is a Captain D's Franchise the Right Fit for Your Portfolio?
If you are looking for a stable brand with a significant corporate footprint and a specialized menu, Captain D's may be the right move. The brand maintains a balanced mix of nearly 300 corporate units and over 230 franchised locations, signaling a deep commitment from the parent company to the brand's daily operational success. Prospective owners should be ready to manage a high-volume environment, as evidenced by the $1.5 million median annual revenue per unit. If you have the required financial standing and a passion for providing a unique dining experience, Captain D's offers a structured path to entering the competitive fast-casual seafood sector.
Captain D's Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Captain D's Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 533 | 531 | 530 |
| Net Change YoY | N/A | -2 | -1 |
| Franchised Units | 240 | 238 | 237 |
| Net Change YoY | N/A | -2 | -1 |
| Corporate Units | 293 | 293 | 293 |
| Net Change YoY | N/A | 0 | 0 |
Financial Requirements
To qualify for a Captain D's franchise, candidates must meet specific financial thresholds, including a minimum net worth of $1,500,000 and liquid cash availability of $350,000. These requirements ensure that partners have the necessary capital to sustain operations and grow the brand within their respective markets.
Investment Costs
The initial investment for a Captain D's location ranges from a low of $898,600 to a high of $1,354,200. This investment covers the initial franchise fee of $35,000, as well as the costs associated with construction, equipment, and opening expenses for a new seafood restaurant.
Ongoing Fees
Franchisees are required to pay a recurring royalty fee of 4.5% of gross sales for new units. Additionally, there is a marketing fee of 1.10%, which supports brand-wide advertising initiatives and promotional efforts to drive customer traffic and maintain market presence.
Unit Growth and Performance
As of 2023, the Captain D's network consists of 530 total units, comprised of 237 franchised locations and a strong corporate presence of 293 company-owned stores. While the median annual revenue per unit stands at $1,500,000, the system demonstrates a wide range of performance metrics across its various territories.
Profitability Timelines
Based on historical data, new Captain D's locations have shown an average breakeven time of approximately 3 months. However, the long-term investment payback period is estimated at 122 months, reflecting the capital-intensive nature of the quick-service seafood industry and the time required to recoup the initial total investment.
Brand Stability
Captain D's maintains a balanced corporate structure with a high ratio of company-owned units, which remained steady at 293 locations between 2021 and 2023. This significant corporate investment demonstrates the franchisor's commitment to the business model and provides a stable foundation for the 237 franchised units currently in operation.
Frequently Asked Questions
The total investment required to open a Captain D's location ranges from a low of $898,600 to a high of $1,354,200. This range covers essential startup costs including equipment, signage, and construction.