Cousins Maine Lobster Franchise
Cost, fees, owner earnings, closure rate and litigation for a Cousins Maine Lobster franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
Cousins Maine Lobster discloses earnings (Item 19) — but the grade is how honestly. We graded it D.
What their own earnings claim actually says
Only 2 franchised units full-year 2025 data disclosed. Average annual gross sales $1,299,825. No net income/profit disclosed. Cherry-picked: excludes 2 units closed mid-year.
What a Cousins Maine Lobster franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $40,000 | Item 5 — paid up front, before you open |
| Royalty | 6% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 2% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 8% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $266,600 – $965,800 | Item 7 — franchisor's own low/high estimate |
Royalty: greater of 6% or $3,500/month. Ad fund up to 2%. 20+ additional fees including termination penalties.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Cousins Maine Lobster system size and owner turnover
| Total outlets | 2 |
| Ceased operations | 2 |
| Terminated by franchisor | 2 |
| Transferred to new owners | 0 |
| Closure rate | 100.0% of outlets |
System declined 71% (7→2 units) in 3 years; 5 ceased/terminated since 2023.
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 Cousins Maine Lobster worth it? — how it compares to 164 similar franchises
| Ongoing fees | 8% of sales | lower than most (median 8%) |
| Startup cost | from $266,600 | cheaper than most (median $481,500) |
| Disclosure honesty | Grade D | less honest than most of the category |
| Closure rate | 100.0% of outlets | worse than 99% 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 Cousins Maine Lobster
The franchisor's framing: Only 2 franchised units full-year 2025 data disclosed. Average annual gross sales $1,299,8… 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
See a full sample report → · 30-day guarantee
Cousins Maine Lobster franchise — frequently asked
- How much does a Cousins Maine Lobster franchise cost?
- The FDD lists a total initial investment of about $266,600–$965,800, including a $40,000 initial franchise fee.
- How much do Cousins Maine Lobster franchise owners make?
- Only 2 franchised units full-year 2025 data disclosed. Average annual gross sales $1,299,825. No net income/profit disclosed. Cherry-picked: excludes 2 units closed mid-year. We grade this disclosure D for honesty.
- What are the Cousins Maine Lobster franchise fees?
- Cousins Maine Lobster's FDD discloses a $40,000 initial franchise fee, a 6% royalty on gross sales, a 2% advertising-fund contribution, for roughly 8% of gross sales in recurring fees before rent, labor, or debt service. Royalty: greater of 6% or $3,500/month. Ad fund up to 2%. 20+ additional fees including termination penalties.
- What is the Cousins Maine Lobster franchise profit margin?
- Cousins Maine Lobster does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: Only 2 franchised units full-year 2025 data disclosed. Average annual gross sales $1,299,825. No net income/profit disclosed. Cherry-picked: excludes 2 units closed mid-year. Recurring fees alone take about 8% 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 Cousins Maine Lobster franchise failure rate?
- System declined 71% (7→2 units) in 3 years; 5 ceased/terminated since 2023.
- How many Cousins Maine Lobster locations are there?
- Cousins Maine Lobster's FDD reports 2 total outlets, with 2 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 Cousins Maine Lobster have complaints or lawsuits?
- Cousins Maine Lobster 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 Cousins Maine Lobster franchise worth it?
- It depends on the numbers, not the pitch. Cousins Maine Lobster scores D on disclosure honesty, carries about 8% of sales in ongoing fees. Get the real owner take-home before you sign.
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Source: WI DFI Franchise Registration (2026). FranchiseValidate is independent and not affiliated with Cousins Maine Lobster or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.