Shuckin Shack logo

Shuckin Shack Franchise

Audited Financials
Food and BeverageEst. 2014Wilmington, NC
www.theshuckinshack.com

Risk Score

Pending analysis

Investment Range

$456,750 - $1,496,420

Franchise Fee

$40,500

Min Cash Required

$20,000

Total US Locations

18

Business Summary

Shuckin' Shack Oyster Bar operates as an oyster bar and seafood restaurant that offers a neighborhood atmosphere. It features fresh seafood like oysters, clams, and other shellfish, along with sandwiches, salads, and other menu items. Each location also includes a full-service bar, providing options for on-premises dining, carryout, catering, and delivery.

Corporate History

Shuckin Shack Franchising LLC was established as a North Carolina limited liability company on February 18, 2014. The company operates the Shuckin' Shack Oyster Bar Restaurant franchise system, having begun offering franchises on April 10, 2014. The company does not have any predecessors or a parent company. However, its affiliates, Shuckin Shack Oyster Bar Inc. and Shuckin' Shack Downtown, LLC, have been operating similar Shuckin' Shack Oyster Bar Restaurants since 2008 and 2016, respectively.

Financial Overview

Investment Range

$456,750 - $1,496,420

Franchise Fee (Low)

$40,500

Franchise Fee (High)

$130,000

Minimum Cash Required

$20,000

Royalty %

5.5%

Marketing %

1.5%

Equipment Costs (Low)

$336,400

Equipment Costs (High)

$1,157,847

Working Capital

$35,000

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

Shuckin Shack Franchising LLC's financial statements show positive net operating income, reaching $278,809 in 2024 and $267,122 in 2023. The company also reported positive cash and cash equivalents, which increased to $528,979 in 2024 from $459,339 in 2023. Members' equity is positive and growing, standing at $322,696 in 2024. While the auditor's report noted their responsibility to evaluate if there were conditions raising substantial doubt about the company's ability to continue as a going concern, it did not state that such a qualification was issued. The company has an $80,000 line of credit, with $60,000 outstanding in 2024, and a $20,000 loan to a related party for office renovations. Overall, Shuckin Shack Franchising LLC appears to be in a healthy financial position, with increasing revenue and cash flow, and no specific financial concerns highlighted by the auditors beyond their general responsibilities.

Financing Details

Shuckin' Shack Oyster Bar does not offer any direct or indirect financing to its franchisees. This means that Shuckin' Shack Oyster Bar will not provide loans, payment plans for the initial franchise fee, or guarantees for any notes, leases, or other obligations that franchisees may incur. Franchisees are responsible for securing all necessary funding from third-party sources.

Performance Metrics

Total US Locations

18

Franchised Units

16

Corporate Units

2

Avg Square Footage

2,650

Franchising Since

2014

Agreement Terms

Initial Term

10 years

Renewal Term

10 years

Renewal Conditions

To renew their Shuckin' Shack Oyster Bar franchise, franchisees must be in compliance with the terms of their Franchise Agreement, provide 180 days prior written notice of their request to renew, and sign the then-current form of Franchise Agreement and any related agreements for the renewal term. They must also sign a general release in favor of Shuckin' Shack Oyster Bar, remodel and upgrade their restaurant to meet current brand standards and specifications, and secure the legal right to continue occupying their restaurant location. All owners and their spouses must also be in compliance with their agreements and personally guarantee the terms of the new renewal Franchise Agreement.

Training & Support Program

Franchisor Assistance

Before opening, Shuckin' Shack Oyster Bar assists franchisees with granting the franchise, defining the designated territory, providing access to the Operations Manual, and reviewing and approving the chosen site. They provide lists of approved suppliers, distributors, signage, equipment, furniture, and fixtures. Franchisees are identified on the Shuckin' Shack Oyster Bar website and must complete an initial three-week training program, which includes classroom and on-the-job instruction in Wilmington, NC, as well as some virtual and on-site support. Shuckin' Shack Oyster Bar also conducts five pre-opening site visits, including assistance during the soft opening. After opening, ongoing support includes supplemental training (available for a fee if requested or required), initial training for replacement managers (for a fee), communication of operational and marketing standards, administration of the Brand Development Fund, and participation in an annual system conference (with a fee). Shuckin' Shack Oyster Bar may also designate pricing and hours of operation.

Initial Training Hours

144

Training Location

Wilmington, NC

Ongoing Support

After opening, Shuckin' Shack Oyster Bar provides various ongoing support services. This includes optional or required supplemental on-site training (for a fee of $250 per trainer per day plus expenses) and initial training for any replacement Operating Managers (for a fee of $250 per manager per day plus expenses). The franchise communicates updated operating standards, procedures, and System requirements. They also provide ongoing marketing standards and require approval for marketing materials. Franchisees receive lists of approved vendors and suppliers. Shuckin' Shack Oyster Bar may organize an annual system conference that franchisees are required to attend (with a fee up to $1,500 plus the franchisee's travel and accommodation expenses). The franchisor also administers a Brand Development Fund to which franchisees contribute. Shuckin' Shack Oyster Bar does not provide assistance with hiring or training employees, but it reserves the right to designate maximum, minimum, and promotional pricing as well as hours of operation for the restaurants.

Franchise Requirements

Ideal Candidate Profile

Shuckin' Shack Oyster Bar is looking for franchisees who will be personally responsible for the management and overall supervision of their restaurant. If the franchisee is a corporate entity, a designated Managing Owner must be approved by the franchisor and successfully complete the initial training program. While hands-on involvement from the Managing Owner is recommended, an approved Operating Manager can oversee daily on-site operations. Franchisees, including all Owners and their Spouses, are required to personally guarantee all financial obligations under the franchise agreement. Ideal candidates should possess good moral character, sufficient business experience, aptitude, and financial resources, and must not own or operate a competitive business.

Industry Experience Required

No

Management Experience Required

No

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

Retail

Owner Participation

Supervisory

Territory Type

Limited

Territory Size Requirements

Shuckin' Shack Oyster Bar defines its designated territory for a single restaurant to generally encompass a population of 25,000 to 35,000 people as of the date of the Franchise Agreement. If a restaurant is in an area with high non-resident traffic, the designated territory may include fewer than 25,000 people. The franchisor identifies territories by zip code, boundary streets, highways, county lines, or other recognizable demarcations.

Staffing Notes

Shuckin' Shack Oyster Bar requires franchisees to have a Managing Owner or an approved Operating Manager responsible for the day-to-day on-site operations and supervision of the restaurant. For initial training, the franchisee or Managing Owner, one designated manager, and two additional individuals must attend a three-week program. If more than four individuals attend initial training, an additional fee per person will apply. On-site assistance for the soft opening includes 40 hours of support. Training phases include instruction for Owners, General Managers, and key Front-of-House (FOH) and Back-of-House (BOH) employees. All employees are required to wear specific uniforms, and staff training must conform to Shuckin' Shack Oyster Bar's standards and specifications.