Captain Ds
Captain D's offers quick-service restaurants specializing in fish sandwiches and fries. Known for its crispy fish and variety of sides, it operates in the fast-food sector alongside chains like McDonald's and Burger King.
About Captain Ds
Captain D's, LLC. is an American fast casual restaurant chain that specializes in seafood and is headquartered in Nashville, Tennessee. The chain was founded as Mr. D's Seafood and Hamburgers by Raymond L. Danner Sr. on August 15, 1969, in Donelson, Tennessee. The chain is currently owned by private-equity firm Centre Partners. Captain D's currently has more than 500 locations in the United States.
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Captain Ds franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment needed to begin operating a Captain D's franchise ranges from $898,600 to $1,354,200 depending on the type of restaurant. This includes an amount ranging from $60,000 to $69,100 that you must pay to the company [p.1].
What is the initial franchise fee?
The initial franchise fee for a location equals $35,000. This fee is paid in two installments: one-half when you sign the Development Agreement and the remaining one-half when you sign the Franchise Agreement for each location. [p.9]
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 4.50% of gross sales [p.12, p.112]. There is also an advertising fee that is not specified in detail but is included in the total franchise fees [p.124].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement has a term of 20 years from the opening date of the Captain D's restaurant at the Franchised Site. You have the right to renew this license for an additional 20-year period by giving written notice not less than six months prior to the expiration of the initial term, subject to certain conditions being met [p.96].
Can I sell or transfer my franchise, and what does that require?
According to [p.172], you can sell or transfer your franchise at the franchisor's sole discretion. If approved, the assignee or transferee must agree to execute new agreements and pay a $500 fee per licensed site to XPIENT. This isn't specified in the provided excerpts for Captain D's, so for exact terms related to Captain D's, you should refer to their specific FDD.
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the agreement on any grounds available by law, as stated on [p.146]. However, termination without 'reasonable cause' as defined by Virginia Retail Franchising Act or Virginia laws may not be enforceable, according to [p.152].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you will not receive an exclusive territory under either a Franchise Agreement or a Development Agreement. However, you are granted a protected area consisting of a circle with a two-mile radius centered around the front door of your Captain D's restaurant [p.33]. This protected area can be smaller in downtown or urban areas. The agreement does not prevent the franchisor from operating other types of restaurants within your protected area that do not use the 'Captain D's' name [p.34].
What training and ongoing support does the franchisor provide?
The franchisor provides an opening team for initial training, consisting of up to five trainers for one existing restaurant or up to three trainers for two or more existing restaurants, for a period of 14 days or 10 days respectively. For additional support and training beyond this, the franchisee may be charged for some or all of the costs incurred by the franchisor [p.32]. The franchisor also requires that at least three managers at the Captain D's restaurant complete management training programs specified by the franchisor or comparable ones approved in advance [p.105], and may charge fees for these trainings as well as require reimbursement for expenses incurred.
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor is permitted to provide financial performance information under certain conditions, such as having a reasonable basis and including it in the Disclosure Document [p.40]. However, other than the specified financial performance representations, no financial performance representations are made, and employees or representatives are not authorized to make any such representations [p.43].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only those products and services that the franchisor has approved [p.36]. You must purchase or lease fixtures, equipment, furnishings, food products, and supplies that meet the standards and specifications designated by the franchisor [p.16]. Additionally, you must purchase virtually all of your food and supplies from McLane Foodservice Distribution, Inc., Bassham Wholesale Egg Company, Inc., or US Foods, Inc., with the specific distributor determined based on your restaurant's location [p.17].