Cousins Maine Lobster Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$267,000 - $969,300
Franchise Fee
$40,000
Min Cash Required
$50,000
Total US Locations
4
Business Summary
Cousins Maine Lobster operates fast-casual restaurants, known as Storefronts, that specialize in serving lobster, seafood, and other related food items. Franchisees offer these products from a fixed storefront location under the Cousins Maine Lobster® brand name and system.
Corporate History
Cousins Maine Lobster's brand originated with Cousins Maine Lobster, LLC (CML), a California limited liability company formed in November 2011, which began operating mobile food trucks. CML also launched a storefront operation in July 2015. The specific franchisor entity for storefronts, CML Storefront, LLC, was formed in Maine in February 2017 and began offering franchises in the same month. An affiliate, CML Franchise LLC, which offers food truck franchises, was formed in California in January 2014 and later converted to a Maine entity in April 2022.
Financial Overview
Investment Range
$267,000 - $969,300
Franchise Fee (Low)
$40,000
Franchise Fee (High)
$40,000
Minimum Cash Required
$50,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$95,000
Equipment Costs (High)
$550,000
Working Capital
$62,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Cousins Maine Lobster's franchisor entity, CML Storefront, LLC, has a negative members' deficit of $(49,875) as of December 31, 2024, and $(110,292) as of December 31, 2023. This indicates accumulated losses or distributions exceeding capital. The franchisor's FDD itself explicitly states that its financial condition "calls into question the Franchisor's financial ability to provide services and support to you." However, the auditor provided an unqualified opinion on the financial statements.
Financing Details
Cousins Maine Lobster does not offer any direct or indirect financing to its franchisees. This means franchisees are responsible for securing their own loans, leases, or other financial obligations and the franchisor does not guarantee any third-party financing.
Performance Metrics
Total US Locations
4
Franchised Units
4
Corporate Units
0
Avg Square Footage
1,400
Franchising Since
2017
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
Cousins Maine Lobster has had one recent litigation case. In April 2024, its affiliate, CML Franchise LLC, initiated a lawsuit against a former franchisee, Todd Adams LLC, and its principals. The lawsuit, filed in California, alleged that the Todd Parties breached their franchise contract by abandoning their Oklahoma City Cousins Maine Lobster franchise. The case was settled in July 2024, with the Todd Parties agreeing to pay CML Franchise LLC $27,514.15.
Bankruptcy History
Cousins Maine Lobster has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their Cousins Maine Lobster franchise, franchisees must provide written notice between 6 to 9 months before their current term ends. They must be in good standing, without any defaults or repeated breaches of the agreement, and must have the right to occupy their approved location. Franchisees are required to remodel their storefront to meet current brand standards, reimburse the franchisor for inspection costs, ensure all licenses and insurance are current, comply with all training requirements, and pay a $10,000 successor franchise fee. They will also need to sign the franchisor's then-current franchise agreement, which may have different terms, including a potentially smaller territory or higher fees, though the royalty fee will not increase by more than 1% above the prior agreement's rate. Franchisees and their owners must also sign a general release of all claims against the franchisor.
Training & Support Program
Franchisor Assistance
Cousins Maine Lobster provides comprehensive support to its franchisees. Before opening, the franchisor assists with site acceptance, reviews proposed leases, designates territories, and approves construction plans and designs. They provide initial training, loan an Operations Manual, offer grand opening advertising support, and sell an initial order of supplies and inventory. After opening, Cousins Maine Lobster provides individual assistance by phone or electronically during business hours, offers general guidance through various media, and provides on-site assistance during initial operations. Additional training is available if requested or deemed necessary, for a fee. Optional support includes annual conferences, advice on operating problems, administration of a shared Advertising Fund, coordination of the brand's internet presence, and the creation of gift card or customer loyalty programs. They may also negotiate purchase agreements with approved suppliers and, if requested, investigate and resolve customer disputes.
Initial Training Hours
190
Training Location
Los Angeles, California; Nashville, Tennessee; or Portland, Maine
Ongoing Support
After opening, Cousins Maine Lobster provides franchisees with individual assistance by phone or through electronic means during normal business hours. They furnish specifications and standards and offer general guidance through various media. Upon request, or if required due to performance below System standards, additional on-site or off-site training is available for a fee. Franchisees can request pre-approved advertising and promotional materials (for a fee). The franchisor's affiliate, CSD, sells lobster, seafood, soups, bread, proprietary packaging, and other inventory items. Optional support includes annual conferences for a fee, advice on operating problems discovered through inspections, administration of the Advertising Fund, coordination of the System's internet presence (including social media and websites), periodic modifications to required products, and the creation of gift card or customer loyalty programs. The franchisor may also negotiate purchase agreements with approved suppliers and, in some cases, investigate and resolve client disputes.
Franchise Requirements
Ideal Candidate Profile
Cousins Maine Lobster seeks franchisees who will be actively involved in the day-to-day, full-time supervision of their Storefront. If the franchisee is a legal entity, a Designated Manager, approved by the franchisor, must operate the business full-time. Candidates undergo a credit and criminal background check. They must maintain a minimum average daily balance of $50,000 in their Storefront's operating bank account.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
full-time
Territory Type
protected
Territory Size Requirements
Cousins Maine Lobster defines its franchise territories as the lesser of either an area with approximately 50,000 people or a 5-mile radius.
Staffing Notes
Cousins Maine Lobster requires franchisees to maintain a competent, conscientious, and trained staff, fluent in English, in sufficient numbers to provide prompt, courteous, and knowledgeable service. Franchisees are responsible for all aspects of employee management, including hiring, training, directing, scheduling, supervising, wages, payroll taxes, and benefits. Employees must be paid the prevailing wage for the specific territory and are required to wear uniforms of a design and color prescribed by the franchisor in the Operations Manual. Franchisees must also ensure that employees sign a Franchise Relationship Acknowledgement form, clarifying that the franchisee is their sole employer and not the franchisor.