Cousins Maine Lobster
Cousins Maine Lobster franchises offer restaurants serving fresh lobster and seafood. Known for authentic Maine flavors, this franchise operates in the casual dining and quick-serve restaurant sectors.
About Cousins Maine Lobster
Cousins Maine Lobster is a franchise food truck business based in Los Angeles, California, United States. In addition to food truck locations in Southern California, it has franchise locations throughout the U.S.
Read more on Wikipedia → · Facts from Wikipedia (CC BY-SA)
Cousins Maine Lobster franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Cousins Maine Lobster® restaurant ranges between $91,000 and $147,000, which must be paid to the franchisor and its affiliates. [p.1]
What is the initial franchise fee?
The initial franchise fee is $40,000, payable via wire transfer upon signing the Franchise Agreement [p.12]. This fee is not refundable under any circumstances [p.12].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is six percent (6%) of your Gross Sales for the prior calendar month, but it has a minimum of $3,500 per month [p.68]. There is no specific mention of an advertising fee in these excerpts.
How long is the initial franchise agreement, and can I renew it?
The duration of the initial franchise agreement isn't specified in these excerpts. However, subject to the franchisor's approval and payment of a renewal fee, you may generally renew the franchise agreement upon its expiration [p.170, p.141, p.157, p.129].
Can I sell or transfer my franchise, and what does that require?
The franchisor can refuse to permit a transfer of ownership of the franchise except for good cause [p.202] and [p.5]. Good cause includes but is not limited to unspecified factors. Additionally, the franchisor has a right of first refusal to purchase the franchise in case of transfer [p.9] and [p.5].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if there is good cause, which includes the franchisee's failure to comply with any lawful provision of the franchise agreement and not curing such failure within a reasonable time frame, typically no more than 30 days [p.206, p.202]. Additionally, the franchisor may terminate the agreement on any grounds available by law [p.206].
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?
You do not receive an exclusive territory; you may face competition from other franchisees and outlets owned by the company. However, your rights are protected within a defined territory based on the site for your Storefront, as agreed upon and approved by both parties [p.112].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training focusing on operations and brand standards [p.34], but you will be responsible for hiring, training, and supervising your employees and independent contractors in day-to-day operations [p.32]. This includes training your managerial staff and owners [p.32].
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 does provide some financial performance information, but it is important to note that these figures do not reflect costs such as sales, operating expenses, or other necessary deductions for net income. The franchisor may also provide actual records of an existing outlet if you are purchasing one. Additionally, the franchisor shares your financial information with landlords, lenders, and generally among franchisees [p.85], and can share a Guarantee of Performance from their guarantor upon request [p.196].
What am I restricted to selling, and where must I buy supplies?
You are required to sell only the services and products that have been approved by the franchisor in the Operations Manual. You must use proprietary recipes and ingredients provided by the franchisor for preparing menu items as specified in the Operations Manual. Additionally, you may be required to purchase certain items, such as lobster and seafood inventory, exclusively from suppliers designated by the franchisor [p.20]. Other than these specific items, you can buy or lease other supplies from approved suppliers that the franchisor designates, though these may be more expensive than alternatives [p.3] unless specified otherwise in the Operations Manual.