Risk Score
Pending analysis
Investment Range
$898,600 - $1,354,200
Franchise Fee
$17,500
Total US Locations
530
Business Summary
Captain D's, LLC offers franchises to operate Captain D's restaurants, which are fast-casual seafood eateries. These restaurants specialize in freshly-prepared, high-quality seafood, with their signature hand-battered, fried fish. Captain D's also serves premium grilled fish, shrimp, chicken, and various home-style side dishes like corn, baked potatoes, okra, green beans, coleslaw, and hushpuppies, along with selected desserts. They offer different prototype restaurants, including 44-seat, 32-seat, express (no seating), and inline or endcap locations with up to 22 seats.
Corporate History
Captain D's, LLC, a Delaware limited liability company, has been operating and franchising Captain D's restaurants since August 31, 2000. Captain D's changed the name of its License Agreement and License Fee to Franchise Agreement and Franchise Fee, respectively, in April 2007. The company is a wholly-owned subsidiary of Captain D's Intermediate Holding Corp. and its ultimate parent is Centre Capital Investors VII, L.P., which acquired Captain D's from Sentinel Capital Partners on May 18, 2022. Captain D's Equipment, LLC, a wholly-owned subsidiary, sells equipment and supplies to franchisees. Captain D's Enterprises, LLC, also a wholly-owned subsidiary, holds trademarks and provides gift card services, and acts as the guarantor for Captain D's obligations. Another affiliate, Grandy's, LLC, which shares common control, has operated and franchised quick-service restaurants since 1973 and 1977, respectively.
Financial Overview
Investment Range
$898,600 - $1,354,200
Franchise Fee (Low)
$17,500
Franchise Fee (High)
$35,000
Royalty %
4.5%
Marketing %
1%
Equipment Costs (Low)
$550,000
Equipment Costs (High)
$815,000
Working Capital
$65,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The franchisor's financial condition, as reflected in its financial statements, calls into question Captain D's financial ability to provide services and support to its franchisees. Captain D's Enterprises, LLC, the guarantor, reported total assets of $234,100,718 as of March 23, 2025, and a net income of $2,436,000 for the 12 weeks ended March 23, 2025. The audited statements also show that Captain D's Enterprises, LLC is a co-guarantor of the Parent's debt, with an aggregate borrowing of $266.1 million as of December 29, 2024, and substantially all of its assets are pledged as collateral for the term loan. Despite the going concern risk highlighted in the FDD's cover page, the auditor's report for Captain D's Enterprises, LLC gives an unqualified opinion on the financial statements.
Financing Details
Captain D's does not offer any direct or indirect financing arrangements to its franchisees. It also does not guarantee franchisees' notes, leases, or other obligations. Franchisees are responsible for securing their own financing through banks or other lenders.
Performance Metrics
Total US Locations
530
Franchised Units
237
Corporate Units
293
Avg Square Footage
1,600
Franchising Since
2000
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Captain D's has no current or past litigation that requires disclosure in Item 3 of its Franchise Disclosure Document.
Bankruptcy History
Captain D's has no current or past bankruptcy proceedings that require disclosure in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
20 years
Renewal Term
20 years
Renewal Conditions
To renew their franchise agreement, Captain D's franchisees must be in good standing, meaning no defaults under their existing agreement. They must sign a new franchise agreement, which may have different terms and fees, and pay a renewal fee up to 50% of the then-current initial franchise fee. Franchisees are also required to remodel their restaurant to reflect current brand standards and complete any additional training. They must be current on all financial obligations to Captain D's and its affiliates, and Captain D's must be satisfied with the restaurant's sales performance and the franchisee's operational and financial standing.
Training & Support Program
Franchisor Assistance
Captain D's provides extensive assistance to its franchisees. Before opening, Captain D's designates a territory, reviews and approves proposed locations, and provides architectural guidelines. It furnishes counseling for construction and pre-opening activities, including advice on layouts, equipment, signs, inventory, employee training, advertising (including digital and social media), and purchasing. Captain D's also provides operations manuals. After opening, Captain D's grants the right to use its system and provides ongoing counseling on various aspects of restaurant operation, such as equipment, employee training, advertising, recipes, purchasing, and operational procedures. It also furnishes operations manuals and approved supplier lists. Captain D's sends an opening team to assist with the grand opening and initial employee training, covering up to $8,000 of their travel and lodging expenses. Captain D's also offers assistance with location selection, ordering equipment, and establishing local suppliers, though these are not contractually required.
Initial Training Hours
200
Training Location
Captain D's certified training restaurants (NCTRs) located across various states like Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Kentucky, Mississippi, Missouri, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Virginia, and West Virginia.
Ongoing Support
After Captain D's restaurants open for business, Captain D's provides ongoing counseling and advisory services upon request on subjects including equipment selection and layout, employee training, advertising and promotion (including digital, mobile, social media, and internet search engine marketing activities), recipes and preparation procedures, purchasing and inventory control procedures, operational procedures, and new developments and improvements in the Captain D's System. Captain D's also manages an advertising fund for national, regional, or local advertising and provides semiannual statements of its revenues and expenses. Captain D's requires franchisees to participate in any local, regional, and national advertising cooperatives and programs it establishes. Franchisees also receive support services for their point-of-sale and computer-based training systems, including full-time telephone support (except on Thanksgiving and Christmas), software fixes and updates, nightly polling services, and credit/debit card processing support.
Franchise Requirements
Ideal Candidate Profile
Captain D's seeks franchisees who can commit to developing one or more restaurants within a specified geographic area. For passive owners, a one-week condensed training program is required, while multi-unit operators must complete a four-week program. General managers and owner-operators are required to complete a minimum six-week training program. Captain D's offers a Veterans Franchise Program, allowing approved veteran applicants who own a controlling interest in the franchise entity and meet minimum financial requirements to pay half the standard franchise fee for their first restaurant. All individuals and business entities owning 10% or more interest in the franchisee are required to guarantee obligations to Captain D's. Franchisees must comply with all federal, state, and local laws applicable to the restaurant industry, including food storage, handling, health, sanitation, and menu labeling regulations.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
protected
Staff Count
33
Territory Size Requirements
Under a Development Agreement, Captain D's designates a geographic area for development. The minimum area for a Development Agreement includes at least one trade area for each restaurant, with each trade area containing a minimum population of 8,000 within a two-mile radius. Captain D's will not establish another Captain D's restaurant (company-owned or franchised) within this development area while the agreement is in effect. For individual Franchise Agreements, Captain D's grants a protected area consisting of a circle with a two-mile radius, centered on the front door of the Captain D's restaurant. For restaurants in downtown or urban areas, Captain D's reserves the right to designate a smaller protected area. Captain D's may not establish another Captain D's restaurant within this protected area.
Staffing Notes
A Captain D's restaurant typically employs approximately 20 to 35 persons, depending on the size and sales volume. For the opening and initial period of operations of a new restaurant, Captain D's recommends hiring between 40 and 45 persons. Franchisees must employ at least three managers who have satisfactorily completed Captain D's management training programs. All employees are required to wear uniforms designated by Captain D's and conduct themselves competently and courteously, maintaining a neat and clean appearance. Captain D's, however, has no control over the franchisee's employees' hours, wages, hiring, or firing.