Captain D's Franchise
Cost, fees, owner earnings, closure rate and litigation for a Captain D's franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
Captain D's discloses earnings (Item 19) — but the grade is how honestly. We graded it B.
What their own earnings claim actually says
Gross sales data for 210 franchised and 281 company-owned comparable restaurants for fiscal year 2025. Franchised avg $1,082,533; company-owned avg $1,010,526. Does not include royalties, advertising fees, or franchisee-specific expenses.
What a Captain D's franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $35,000 | Item 5 — paid up front, before you open |
| Royalty | 4.5% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 1% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 5.5% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $662,000 – $1,862,100 | Item 7 — franchisor's own low/high estimate |
4.5% royalty; 1.0% advertising fee (up to 2.0% max); development incentive program offers reduced fees for multi-unit commitments through May 1, 2028.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Captain D's system size and owner turnover
| Total outlets | 518 |
| Ceased operations | 13 |
| Terminated by franchisor | 0 |
| Transferred to new owners | 0 |
| Closure rate | 2.5% of outlets |
13 franchised outlets ceased operations in 2025; 4 company-owned closed. Net system decline of 12 units.
From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Captain D's worth it? — how it compares to 164 similar franchises
| Ongoing fees | 5.5% of sales | lower than most (median 8%) |
| Startup cost | from $662,000 | pricier than 68% of peers |
| Disclosure honesty | Grade B | more honest than 85% of quick service restaurants franchises |
| Closure rate | 2.5% of outlets | worse than 61% of peers |
| Disclosed lawsuits | 0 | fewer than most |
Benchmarked against every quick service restaurants franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Captain D's
The franchisor's framing: Gross sales data for 210 franchised and 281 company-owned comparable restaurants for fisca… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
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Captain D's franchise — frequently asked
- How much does a Captain D's franchise cost?
- The FDD lists a total initial investment of about $662,000–$1,862,100, including a $35,000 initial franchise fee.
- How much do Captain D's franchise owners make?
- Gross sales data for 210 franchised and 281 company-owned comparable restaurants for fiscal year 2025. Franchised avg $1,082,533; company-owned avg $1,010,526. Does not include royalties, advertising fees, or franchisee-specific expenses. We grade this disclosure B for honesty.
- What are the Captain D's franchise fees?
- Captain D's FDD discloses a $35,000 initial franchise fee, a 4.5% royalty on gross sales, a 1% advertising-fund contribution, for roughly 5.5% of gross sales in recurring fees before rent, labor, or debt service. 4.5% royalty; 1.0% advertising fee (up to 2.0% max); development incentive program offers reduced fees for multi-unit commitments through May 1, 2028.
- What is the Captain D's franchise profit margin?
- Captain D's does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: Gross sales data for 210 franchised and 281 company-owned comparable restaurants for fiscal year 2025. Franchised avg $1,082,533; company-owned avg $1,010,526. Does not include royalties, advertising fees, or franchisee-specific expenses. Recurring fees alone take about 5.5% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the Captain D's franchise failure rate?
- 13 franchised outlets ceased operations in 2025; 4 company-owned closed. Net system decline of 12 units.
- How many Captain D's locations are there?
- Captain D's FDD reports 518 total outlets, with 13 that ceased operations in the most recent reporting year and 0 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Captain D's have complaints or lawsuits?
- Captain D's discloses no material litigation in Item 3 of the filing we reviewed. That's a positive signal, though it covers only what the franchisor is required to report.
- Is a Captain D's franchise worth it?
- It depends on the numbers, not the pitch. Captain D's scores B on disclosure honesty, carries about 5.5% of sales in ongoing fees. Get the real owner take-home before you sign.
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Compare Captain D's to similar franchises
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Source: MN CARDS 36260-202604-06 (Clean FDD 2026). FranchiseValidate is independent and not affiliated with Captain D's or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.