Shuckin Shack
Shuckin' Shack Oyster Bar offers franchises for oyster bars and seafood restaurants with locations in North Carolina. Known for fresh seafood including oysters, clams, and other shellfish, it operates in the casual dining and seafood restaurant industry.
Shuckin Shack franchise FAQ
How much does it cost to open one — the total initial investment?
The total estimated initial investment to begin operation of a Shuckin' Shack Oyster Bar franchise under a Franchise Agreement, excluding the Initial Franchise Fee for a 1-3 Multi-Franchise Addendum, is $551,750 to $1,496,420. This includes $155,000 that must be paid to the franchisor or its affiliate(s). [p.22]
What is the initial franchise fee?
The initial franchise fee for a single franchise is $45,000 [p.19]. For a single franchise supplemented with their 1-3 Multi-Franchise Addendum, it is $130,000 [p.19]. This fee is non-refundable and must be paid upon execution of the applicable Franchise Agreement [p.240].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee ranges from 3.5% to 5.5% of gross sales based on the length of existence of each individual franchisee [p.104, p.90, p.135]. Additionally, there is a bi-weekly advertising fee of 1.5% of gross sales [p.104, p.90, p.135]. These fees are recognized and paid biweekly in accordance with the franchise agreements [p.104, p.90].
How long is the initial franchise agreement, and can I renew it?
The duration of the initial franchise agreement isn't specified in the excerpts. However, according to [p.163], there is an option for a Franchisee to renew the franchise for one additional 10-year term under certain conditions.
Can I sell or transfer my franchise, and what does that require?
According to the FDD excerpts, you can transfer ownership of your franchise, but it requires the franchisor's approval. The franchisor can refuse a transfer for good cause, which includes but is not limited to unspecified criteria [p.253]. This isn't specified in the excerpts.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.256]. Additionally, the franchisor may terminate for good cause, such as the franchisee's failure to comply with lawful provisions of the franchise agreement and failing to cure such failures after receiving written notice and a reasonable opportunity to cure, which cannot exceed 30 days [p.5; p.253].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD does not provide specific financial requirement details such as net worth or liquid capital needed to qualify for the franchise. However, it mentions that if the franchisor's most recent financial statements are unaudited and show a net worth of less than $100,000, you may request escrow of initial investment funds until certain obligations are fulfilled [p.253].
Do I get an exclusive or protected territory?
You do not receive an exclusive territory, but you are protected from competition by other franchisees or outlets owned by the company within your designated territory during the term of the Franchise Agreement, provided you comply with it [p.40]. However, this protection does not extend to competition from other channels of distribution controlled by the franchisor [p.40].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training to the franchisee, which includes assistance with the soft opening as part of the Training Program. This training is included in the Training and Opening Fee unless it exceeds five days or 40 hours, after which additional fees may apply [p.38]. There is no specified ongoing support beyond this initial training period; however, the franchisor reserves the right to require attendance at a System-Wide Training Program for up to five days annually [p.38].
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, Shuckin Shack Franchising LLC, may provide financial performance information for its franchised and/or company-owned outlets if there is a reasonable basis for this information [p.53]. However, they do not make representations about future financial performance of new franchises or existing ones, nor do they authorize their employees or representatives to make such claims orally or in writing [p.59]. This isn't specified in the excerpts.
What am I restricted to selling, and where must I buy supplies?
You are required to exclusively offer and serve the Approved Services and Products as specified in the Operations Manual [p.143(2)(a)]. Additionally, you must purchase or lease certain source-restricted goods and services from suppliers designated by the franchisor, including your interior displays, point of sale displays, uniforms, supplies, marketing materials, and promotional materials [p.143(2)(e)]. These purchases typically represent about 85% to 95% of your total expenses [p.25].