Mason's Famous Lobster Rolls Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$241,450 - $629,050
Franchise Fee
$32,500
Total US Locations
27
Business Summary
Mason's Famous Lobster Rolls operates a fast-casual restaurant that specializes in authentic Maine lobster rolls, along with soups, salads, and other menu items. These restaurants offer options for dining in, taking food out, catering, and delivery services.
Corporate History
Mason's Lobster Franchising LLC was founded in Delaware on December 14, 2015, with the primary purpose of developing and operating the Mason's Famous Lobster Rolls restaurant franchise system and offering franchises. Mason's Lobster Franchising LLC started offering franchises in April 2016. The company does not have any predecessors or a parent company. Several affiliates also exist; for example, DMC Foods, LLC, established in 2014, owns the trademarks, while other affiliates like DC Lobster Dupont, LLC, and DC Lobster Co, LLC, operate company-owned restaurants similar to the franchised model in Washington D.C. A newer affiliate, Mason's Long Branch, LLC, also operates a similar restaurant in New Jersey.
Financial Overview
Investment Range
$241,450 - $629,050
Franchise Fee (Low)
$32,500
Franchise Fee (High)
$35,000
Royalty %
5%
Marketing %
1%
Equipment Costs (Low)
$165,000
Equipment Costs (High)
$461,500
Working Capital
$12,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Mason's Lobster Franchising LLC's financial statements for 2023 and 2022 have received an unqualified audit opinion, indicating fair presentation of its financial position. The company reported net income of $341,680 in 2023 and $189,657 in 2022. While the company has a members' deficit, no going concern issues were noted by the auditors. The company has long-term debt, including an SBA EIDL loan and a note payable to LCI Funding, LLC, and also utilizes a line of credit. The financial health indicates operational stability.
Financing Details
Mason's Lobster Franchising LLC does not offer any direct or indirect financing to franchisees. The company also does not guarantee any franchisee's notes, leases, or other financial obligations. Franchisees are responsible for securing their own financing.
Performance Metrics
Total US Locations
27
Franchised Units
25
Corporate Units
2
Avg Square Footage
1,150
Franchising Since
2016
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Mason's Lobster Franchising LLC has no litigation history to report.
Bankruptcy History
Mason's Lobster Franchising LLC has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew, Mason's Lobster Franchising LLC franchisees must be in compliance with their Franchise Agreement and provide 180 days prior written notice of their intent to renew. They must also sign the then-current Franchise Agreement and related agreements for the renewal term, which may have materially different terms. Franchisees are required to sign a general release in favor of Mason's Lobster Franchising LLC, pay a renewal fee, and remodel or upgrade their restaurant to meet current standards. Additionally, they must have the legal right to continue occupying their restaurant location and fulfill all other renewal requirements outlined in the Franchise Agreement. Owners and their spouses must also be in compliance with their agreements and personally guarantee the terms of the renewal Franchise Agreement.
Training & Support Program
Franchisor Assistance
Mason's Lobster Franchising LLC provides several forms of assistance to its franchisees. Before opening, Mason's Lobster Franchising LLC grants the right to operate, designates a territory, provides access to its confidential operations manuals, and offers review and approval of the proposed site location. They also provide lists of approved suppliers, equipment, furniture, and fixtures, along with reviewing and approving proposed signage. Mason's Lobster Franchising LLC identifies the franchisee's restaurant on its website and provides an initial 5-day training program for the franchisee or managing owner and one designated manager at its Annapolis, Maryland facility. After opening, Mason's Lobster Franchising LLC may require or offer supplemental on-site training (for a fee of $150 per day plus expenses) and provides initial training for replacement operating managers (also for a fee). Mason's Lobster Franchising LLC communicates operating standards and specifications, marketing standards, and updates approved vendor lists. They also coordinate an annual system conference (with an attendance fee) and administer a Brand Development Fund. Mason's Lobster Franchising LLC reserves the right to suggest pricing levels, but franchisees determine their own prices. Mason's Lobster Franchising LLC does not assist with hiring or training employees.
Initial Training Hours
40
Training Location
Annapolis, Maryland
Ongoing Support
Mason's Lobster Franchising LLC provides ongoing support to its franchisees through various channels. This includes supplemental on-site training that may be required or offered by the franchisor for a fee of $150 per day per trainer, plus expenses. Training for replacement operating managers is also available for a fee. Mason's Lobster Franchising LLC communicates and updates operating standards, procedures, and system requirements, along with marketing standards and approval processes. The franchisor provides lists of approved vendors and suppliers. An annual System conference may be coordinated, requiring an attendance fee of up to $1,500, with franchisees responsible for travel and accommodation costs. Mason's Lobster Franchising LLC administers System-wide marketing funds and may suggest pricing levels for menu items. However, Mason's Lobster Franchising LLC does not provide assistance with the hiring and training of franchisee employees.
Franchise Requirements
Ideal Candidate Profile
Mason's Famous Lobster Rolls seeks franchisees who, if they are individuals, or whose designated Managing Owner, if a corporate entity, will be personally responsible for the management and overall supervision of the restaurant. While direct day-to-day, on-site participation by the Managing Owner is recommended, the franchisee may hire an approved Operating Manager for daily on-site supervision. This Operating Manager must meet Mason's Famous Lobster Rolls' minimum standards for managers, complete the initial training program, and sign confidentiality agreements. All owners and their spouses must personally guarantee the franchisee's obligations and adhere to confidentiality and non-competition covenants. The ideal candidate profile emphasizes active, continuing, and substantial personal involvement in management and hands-on supervision.
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
Territory Size Requirements
Mason's Lobster Franchising LLC defines the Designated Territory for each Mason's Famous Lobster Rolls restaurant based on whether the location is in an urban or suburban area, as well as other factors determined by the franchisor. For non-traditional or captive market locations like shopping malls or airports, the territory may be limited to the physical boundaries of that facility. The Designated Territory can be identified by zip code, boundary streets, highways, county lines, designated market area, or other recognizable demarcations, and may be centered around the restaurant location or placed elsewhere within the territory based on demographics and geography.
Staffing Notes
Mason's Lobster Franchising LLC requires that each Mason's Famous Lobster Rolls restaurant be managed and supervised on-site by either a Managing Owner or an approved Operating Manager who has completed the initial training program and signed a confidentiality agreement. For multiple restaurants, each must have an Operating Manager on-site. Franchisees are solely responsible for hiring, managing, and supervising their employees. Employees must wear approved System branded uniforms, and franchisees must ensure all products and services are prepared and served according to System standards. Mason's Lobster Franchising LLC does not provide assistance with employee hiring or training.