Long John Silver's Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$677,500 - $2,228,000
Franchise Fee
$20,000
Total US Locations
587
Business Summary
Long John Silver's operates quick-service restaurants offering a limited menu of fish, seafood, chicken, and complementary items. These restaurants can be traditional freestanding buildings, inline spaces in strip malls, or co-branded locations with other restaurant concepts like KFC, Taco Bell, or A&W. Long John Silver's restaurants provide dine-in, delivery, carry-out, and often drive-thru services, focusing on serving food promptly.
Corporate History
Long John Silver's, Inc. was initially incorporated in Delaware on June 6, 1969. Since that time, Long John Silver's has been granting franchises and licenses for its quick-service restaurants. From its founding until December 2011, Long John Silver's also owned and operated its own restaurants. In December 2011, the company converted to a Delaware limited liability company, Long John Silver's, LLC, and was sold to LJS Partners LLC, with Yum! Brands, Inc. divesting its company-operated locations. In October 2015, Long John Silver's began re-acquiring and operating some restaurants through its subsidiaries, LJS Opco One, LLC and LJS Opco Two, LLC. In November 2022, Four Oaks Partners, LLC acquired all outstanding membership interests of LJS Partners LLC, making it Long John Silver's ultimate parent.
Financial Overview
Investment Range
$677,500 - $2,228,000
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$35,000
Royalty %
5%
Marketing %
5%
Equipment Costs (Low)
$208,000
Equipment Costs (High)
$360,000
Working Capital
$162,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The FDD includes audited consolidated financial statements for LJS Partners, LLC and Subsidiary, with the most recent audited period ending January 1, 2023. The auditor provided an Unqualified opinion, indicating that the financial statements are presented fairly in all material respects. The auditor did not identify any conditions or events that raise substantial doubt about LJS Partners, LLC's ability to continue as a going concern. While the company recorded a net loss of $3,271,584 for the period from November 6, 2022, through January 1, 2023, the auditor's report does not highlight this as a financial health concern impacting the company's going concern status.
Financing Details
Long John Silver's does not directly offer or arrange any financing for a franchisee's initial investment or ongoing operations. Furthermore, Long John Silver's does not guarantee any franchisee notes, leases, or other financial obligations.
Performance Metrics
Total US Locations
587
Franchised Units
362
Corporate Units
225
Avg Square Footage
2,200
Franchising Since
1969
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
2
Litigation Summary
Long John Silver's has no pending litigation. The company has been involved in two concluded legal actions. One case from 2012 involved Janko Enterprises, Inc. suing Long John Silver's for breach of contract, fraud, tortious interference, and violations of the Florida Franchise Act. This case was confidentially settled and dismissed in 2014. The second case from 2014 involved Long John Silver's suing Nellis Seafood No. 60, LC, and others for breaching franchise agreements. This dispute was settled in 2014 with the Nellis Parties agreeing to pay Long John Silver's $125,000 and remodel one of their restaurants. All disclosed litigation is older than three years from the FDD's issuance date.
Bankruptcy History
Long John Silver's has no bankruptcy history to report for the franchisor, its predecessors, or key personnel.
Agreement Terms
Initial Term
20 years
Renewal Term
5 years
Renewal Conditions
To renew their Long John Silver's franchise, franchisees must provide written notice to Long John Silver's between six and nine months before the current agreement ends. At the time of notice and expiration, the franchisee must not be in default of any agreement with Long John Silver's or its affiliates and must have satisfied all monetary obligations. Franchisees are also required to provide requested financial information, sign Long John Silver's current standard renewal franchise agreement (which may have different terms, including higher fees), execute a general release of claims, demonstrate the right to occupy the restaurant premises for the new term, and complete any required renovations and modernizations to meet current brand standards.
Training & Support Program
Franchisor Assistance
Long John Silver's provides a range of support services to its franchisees. For pre-opening, Long John Silver's offers written guidelines for site selection, standard plans and specifications for the restaurant, layouts for fixtures and equipment, pre-opening assistance, management training programs, and on-site opening assistance. The company also provides a copy of its Operations Manual and samples of standardized financial reporting forms. On an ongoing basis, Long John Silver's conducts periodic inspections and evaluations, provides standards and specifications for food products and equipment, may test new items (for a fee), offers on-the-job and refresher training, provides consulting services upon request (for a fee), and furnishes merchandising and operating aids. Long John Silver's also has the right to manage national, regional, and local advertising and may provide special marketing plans and materials upon request (for a fee). The company also supports the computer system with technology and support services, including Help Desk and data management.
Initial Training Hours
200
Training Location
Training is conducted at franchisee-owned certified training restaurants and at meeting facilities, such as hotels or convention centers, located throughout the United States. For specific back-of-house (BOH) training, it may be conducted at the Louisville RSC.
Ongoing Support
Long John Silver's provides ongoing support to its franchisees through various means. This includes periodic inspections and evaluations of restaurant operations, and the franchisor may arrange for third-party food safety audits. Upon request, Long John Silver's will provide its standards and specifications to designated suppliers. The franchisor may also test new equipment, food products, or supplies for a fee. On-the-job and instructional training, as well as refresher courses, may be required and provided for employees. Long John Silver's representatives may consult with franchisees regarding operations and inspect restaurants for efficiency and quality. Additionally, merchandising and operating aids are furnished, and the franchisor has the right to conduct and administer national, regional, and local advertising programs. Franchisees also receive ongoing technology and support services for their computer systems.
Franchise Requirements
Ideal Candidate Profile
Long John Silver's evaluates potential franchisees based on their financial qualifications and character, which are assessed through consumer reports and background checks. While Long John Silver's strongly recommends personal and direct involvement in the restaurant's daily operations, it is not a strict requirement. If a franchisee opts not to supervise the restaurant personally, they must appoint at least one on-premises manager. This manager, along with any other employees designated by Long John Silver's, must successfully complete the brand's training programs. Furthermore, individuals holding a 10% or greater ownership interest in the franchisee entity are required to provide a personal guarantee for the franchisee's obligations. Long John Silver's expects franchisees and their owners to be committed to the brand, as reflected in the non-competition covenants.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
absentee-allowed
Territory Type
Non-Exclusive
Territory Size Requirements
For Traditional Long John Silver's Restaurants, the territory is typically a 1.5-mile radius around the restaurant. For Co-Brand Restaurants, the territory is defined as the smaller of a 1.5-mile radius from the restaurant's center or a circle where 30,000 people reside and/or work. Within these territories, Long John Silver's may still establish other types of units, such as express units in captive audience locations or mobile units, and may also sell similar products through alternative distribution channels, meaning franchisees do not receive an exclusive territory.
Staffing Notes
Long John Silver's strongly recommends that franchisees personally participate in the direct operation of their restaurant. If a franchisee will not personally supervise operations, they must designate at least one on-premises manager. For a Traditional Restaurant, four managers are required to be certified, while for a Co-Brand Restaurant, five managers must complete certification. The franchisee or an 'Above Restaurant Leader' must also attend training if they are not serving as a manager. Long John Silver's also mandates ongoing training, refresher courses, and retraining programs for executive, managerial, supervisory, and other employees as designated by the brand. The comprehensive training covers essential operational areas including restaurant basics, production, customer service, human resources, financial planning, cleanliness, food safety, team communication, daily inventory management, facilities and equipment management, marketing, opening and closing procedures, product quality, recruiting, and safety and security. Franchisees are responsible for covering all salaries, wages, benefits, meals, lodging, travel, and other incidental expenses incurred by their employees during these training periods.