Topsail Steamer Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$201,250 - $351,100
Franchise Fee
$20,000
Total US Locations
6
Business Summary
Topsail Steamer franchisees operate businesses that offer customizable, one-time-use steam pots filled with fresh seafood, sausage, vegetables, and homemade seasonings. Customers purchase these pots to take home, where they follow simple instructions to add water and steam them on their stovetop for an easy-to-prepare meal.
Corporate History
Topsail Steamer Franchise, LLC was formed in Delaware on June 27, 2022, and began offering franchises on August 5, 2022. The Topsail Steamer brand and its operations trace back to its affiliate, Topsail Steamer, LLC, which was established in North Carolina on October 10, 2015. Topsail Steamer outlets, similar to the franchise offered, have been operated by affiliates since 2017.
Financial Overview
Investment Range
$201,250 - $351,100
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$45,000
Royalty %
7%
Marketing %
1%
Equipment Costs (Low)
$85,000
Equipment Costs (High)
$175,000
Working Capital
$30,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The franchisor's financial condition, as reflected in its financial statements, calls into question Topsail Steamer's ability to provide services and support to its franchisees. The company reported a net loss of $102,784 in 2023 and $8,153 in 2022, and has negative member's equity of ($60,937) as of December 31, 2023. This indicates a challenging financial position for Topsail Steamer.
Financing Details
Topsail Steamer does not offer any direct or indirect financing to its franchisees. Franchisees are responsible for securing their own loans, leases, or other financial obligations.
Performance Metrics
Total US Locations
6
Franchised Units
1
Corporate Units
5
Avg Square Footage
800
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Topsail Steamer has no litigation cases required to be disclosed in Item 3 of its Franchise Disclosure Document.
Bankruptcy History
Topsail Steamer has no bankruptcy information to disclose in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew the Topsail Steamer franchise agreement, franchisees must be in full compliance with the agreement's terms, have committed no more than three events of default during the current term, and provide written notice to Topsail Steamer at least six months before the current term ends. They must also execute a new franchise agreement, pay a Successor Agreement Fee equal to 10% of the then-current initial franchise fee, maintain the right to occupy the premises (or have approval to relocate), remodel their location to current brand standards, execute a general release, and meet current qualifications and training requirements.
Training & Support Program
Franchisor Assistance
Topsail Steamer provides various forms of assistance to its franchisees. Before opening, Topsail Steamer helps with territory approval, site selection guidelines, and approval of the chosen site. They provide prototypical plans for the outlet's layout, design, appearance, and signage, and review the franchisee's adapted construction plans. Franchisees also receive access to the Topsail Steamer Operations Manual and a list of required equipment, fixtures, and supplies. Topsail Steamer recommends minimum and maximum product prices and conducts initial training in North Carolina for owners and one general manager. Additionally, a trainer provides up to five days of on-site support during the grand opening. After opening, Topsail Steamer offers mandatory additional training programs and annual business meetings (up to five days per year), provides remedial on-site training upon request, and offers individualized telephone, video conference, and email assistance. They also furnish samples of advertising materials, conduct evaluations of the business, and approve all proposed advertising campaigns.
Initial Training Hours
45
Training Location
Wrightsville Beach or Surf City, North Carolina
Ongoing Support
After opening, Topsail Steamer franchisees receive ongoing support including mandatory additional training programs and annual business meetings, each up to five days per year, at a designated location. Topsail Steamer may also provide remedial on-site training and individualized assistance via telephone, video conference, electronic mail, or postal service. Franchisees are provided with samples of advertising and promotional materials, and Topsail Steamer conducts evaluations of the business to ensure compliance with standards. They also provide written specifications for required equipment and suppliers and approve all advertising and promotional campaigns.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Hands-On
Territory Type
Protected
Territory Size Requirements
Topsail Steamer territories are defined on a case-by-case basis using geographic boundaries such as zip codes, towns, cities, or counties. The size of the territory takes into account factors like minimum numbers of households, average home prices, and household incomes. The minimum territory granted is the location of the franchised business itself. While Topsail Steamer promises not to open another Topsail Steamer outlet or authorize another franchisee to do so within the territory, it reserves the right to sell products and services through alternative distribution channels within that area.
Staffing Notes
Topsail Steamer requires that its outlets be directly supervised by a general manager, who can be the franchisee, an Operating Principal (with at least 10% equity in the franchisee entity), or an approved, appointed individual. This general manager must successfully complete Topsail Steamer's Initial Management Training Program, any other required training courses, and must devote full-time efforts to the supervision and management of the franchised business. The Operations Manual includes job descriptions for a Manager (Franchise Owner), Team Leader, and Steam Team Members, indicating a structured employee hierarchy.