The Boil Daddy Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$126,500 - $843,000
Franchise Fee
$25,000
Total US Locations
13
Business Summary
The Boil Daddy operates fast casual restaurants that offer Cajun seafood boil. Franchisees will run these restaurants according to the franchisor's established standards and specifications.
Corporate History
The Boil Daddy Franchise Inc. was formed as a California Corporation on October 25, 2021, and began offering franchises in 2022. Before that, several affiliates operated similar 'The Boil Daddy' outlets. Double J Brothers, Inc. (formed April 2020) operated an outlet from 2020 to 2023, and CZN Enterprise LLC (formed February 2022) operated an outlet from 2022 to 2023, both of which were then sold to franchisees. GULPUP, Inc. (formed January 2019) has operated an outlet similar to the franchise since 2023.
Financial Overview
Investment Range
$126,500 - $843,000
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$45,000
Royalty %
5%
Marketing %
1%
Equipment Costs (Low)
$30,000
Equipment Costs (High)
$600,000
Working Capital
$22,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The Boil Daddy Franchise Inc. has a special risk regarding its financial condition. The franchisor has an unqualified audit opinion but with a going concern qualification, meaning there is substantial doubt about its ability to continue operating. The company reported net losses of $17,043 for 2023 and $103,456 for 2022. As of December 31, 2023, its current liabilities exceeded current assets by $130,858, and it had an accumulated deficit of $120,530. The company's future depends on its ability to secure enough capital to cover operating losses until it becomes profitable.
Financing Details
The Boil Daddy Franchise Inc. does not offer any direct or indirect financing to its franchisees. This means that The Boil Daddy Franchise Inc. will not provide loans or guarantee any notes, leases, or other financial obligations for its franchisees.
Performance Metrics
Total US Locations
13
Franchised Units
12
Corporate Units
1
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
The Boil Daddy Franchise Inc. has no litigation history to report. Item 3 of the Franchise Disclosure Document states that no litigation is required to be disclosed.
Bankruptcy History
The Boil Daddy Franchise Inc. has no bankruptcy information to disclose. Item 4 of the Franchise Disclosure Document explicitly states that no bankruptcy information is required to be disclosed in this item.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew the franchise agreement, The Boil Daddy franchisees must fully comply with all provisions of their existing agreement, make any necessary capital expenditures to keep their business uniform with the System's current standards, and satisfy all financial obligations to The Boil Daddy Franchise Inc. or its affiliates. They must not be in default of any agreement with the franchisor, provide written notice of their intent to renew 9 to 12 months before the agreement ends, and sign the then-current franchise agreement, which may have different terms and conditions. Franchisees must also meet current qualification standards, agree to any new training requirements, sign a general release of claims, and pay a renewal fee equal to 20% of the then-current initial franchise fee.
Training & Support Program
Franchisor Assistance
Before opening, The Boil Daddy Franchise Inc. provides an initial training program, opening assistance and guidance, and a copy or electronic access to its Operations Manual. It also helps with establishing prices, obtaining equipment, signs, fixtures, initial inventory, and supplies, and offers limited assistance with conforming premises to local codes and obtaining permits. The franchisor assists with determining the type and number of employees to hire. After opening, it offers ongoing advice and general guidance by phone or electronic correspondence, makes ongoing training available, and provides modifications to the Operations Manual. For advertising, franchisees must spend a minimum of 1.5% of gross revenues on local advertising monthly and $2,000 to $10,000 on grand opening advertising. Additionally, franchisees pay 1% of gross revenue to a National Advertising and Development Fund used for online, radio, television, direct mail, billboards, and print advertising. Franchisees must use designated computer hardware and software and are provided site selection criteria to help locate their business.
Initial Training Hours
90
Training Location
Los Angeles, CA or another franchisor training center
Ongoing Support
After opening, The Boil Daddy Franchise Inc. offers franchisees advice, discusses problems, and provides general guidance via telephone and electronic correspondence regarding planning and operating the business. The franchisor makes ongoing training programs available as deemed necessary and provides updates and modifications to the Operations Manual. The national advertising fund, to which franchisees contribute 1% of gross revenues monthly, is used to promote the brand through various media. Additionally, The Boil Daddy Franchise Inc. or its representatives may conduct periodic, announced or unannounced, visits to franchised businesses for consultation, assistance, and guidance on operations and management.
Franchise Requirements
Ideal Candidate Profile
The Boil Daddy Franchise Inc. seeks individuals who are financially resourced, experienced in the industry, and possess strong business acumen, including marketing and sales planning abilities. These qualifications are specifically highlighted for those interested in becoming area developers to operate multiple outlets. For single-unit operators, the FDD emphasizes that the franchisee or an approved on-site Designated Manager must devote at least 40 hours per week to the day-to-day operations of the franchised business, implying a need for active and dedicated management.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
exclusive
Territory Size Requirements
The Boil Daddy Franchise Inc. defines franchise territories as a specific geographic region, which is determined and approved by factors such as radius, zip codes, or natural/political boundaries, as outlined in the Franchise Agreement. Typically, a territory will encompass a 3-mile radius around the franchised outlet.
Staffing Notes
The Boil Daddy Franchise Inc. provides assistance to franchisees in determining the type and number of employees to hire. Franchisees are solely responsible for hiring, firing, compensating, paying payroll taxes, and day-to-day supervision of their employees. The franchised business must always be under the day-to-day supervision of either the franchisee as the owner/operator or an approved manager who has successfully completed the franchisor's training program. This manager or the franchisee must dedicate at least 40 hours per week to the business's operations. Franchisees and their staff must also adhere to all uniform and dress code requirements specified in the Operations Manual.