Angry Crab ShackFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Angry Crab Shack franchise requires a total initial investment of $412K – $1.2M, including a $50K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $2.9M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $412K – $1.2M
- 28th pct Service Resta…
- Avg gross sales
- $2.9M
- 25th pct Service Resta…
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 23
- 28th pct Service Resta…
- SBA default
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Each dollar invested generates 3.6x in gross revenue, well above the typical 1.5-2.5x range.
Franchised units fell from 17 to 14 over 3 years. Investigate why operators are leaving.
34% cash-on-cash return (based on EBITDA). Above the 20% threshold most investors target.
Bottom line
- Total investment $412K – $1.2M including a $50K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $2.9M/year (median $2.6M), with an estimated 34% cash-on-cash return (based on EBITDA).
- Verdict A (Top Quintile) with a risk score of 22/100.
- System growing at 21.4% CAGR over 3 years with 23 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Angry Crab Franchise, LLC
- CEO title
- Chief Executive Officer
- Ronald Lou
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- AZ
- HQ
- 2345 South Alma School Road Suite 106, Mesa, Arizona 85210
- Auditor
- CliftonLarsonAllen LLP
- Audited financials
- Franchisor revenue
- $1.5M
- vs $1.7M prior year
Overview
About
Franchisees operate casual-dining seafood restaurants (likely featuring crab and shellfish dishes) with counter-service or limited full-service models. Day-to-day operations include food preparation, inventory management, staffing, and customer service across a protected territory.
- CEO
- Ronald Lou
- Headquarters
- AZ
- Founded
- 2015
- FDD year
- 2025
- States available
- 6
FDD Item 7 · 2025 filing · 19 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $40K | $50K | |
| Lease Security Deposit | $10K | $25K | |
| Rent for first three months | $18K | $45K | |
| Real Estate Broker Fees | $0 | $5K | |
| Travel and Living Expenses (3 persons) while training | $8K | $15K | |
| Leasehold Improvements including restaurant equipment and furniture | $235K | $766K | |
| Opening Inventory, Small Wares, and Supplies | $25K | $60K | |
| Interior and Exterior Signage | $7K | $29K | |
| Point of Sale System and Back Office Computer | $16K | $22K | |
| Required Insurance Premiums | $3K | $4K | |
| Permits and Licenses | $4K | $40K | |
| Technology Fees (first 3 months) | $0 | $1K | |
| Miscellaneous Opening Costs | $2K | $3K | |
| Grand Opening | $5K | $10K | |
| Professional Fees | $3K | $10K | |
| Uniforms | $2K | $3K | |
| Training Payroll | $11K | $42K | |
| Additional Funds - 3-month initial period | $25K | $75K | |
| ServSafe Food Safety Certification | $600 | $1K | |
| Total initial investment | $412K | $1.2M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$318K
11.0% margin
Unlevered ROIC
37%
EBITDA / total invested capital
Payback
32 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $412K – $1.2M
- Better than avg vs category
- Liquid capital req'd
- $25K – $75K
- Better than avg vs category
- Franchise fee
- $40K – $50K
- Better than avg vs category
- Royalty
- 5.0%
- Net Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
- Payback period
- 2.9 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $400 |
| Training fee | $2K |
| Transfer fee | $20K |
| Renewal fee | $25 |
| Total fee load | 7.0% of rev |
Financial Performance
- Avg gross sales
- $2.9M
- Per unit, per year
- Median gross sales
- $2.6M
- Avg ebitda
- $275K
- Reported as EBITDA in FDD Item 19
- Cash-on-cash
- 34.1%
- Based on EBITDA / investment midpoint
- Item 19 type
- net_sales
- Sample size
- 20 units
- vs category median 13
- Range (low → high)
- $1.3M→$5.2M
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 10 / 5
- vs category median 4 / 5 · above
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How Angry Crab Shack Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 23
- Opened
- 2
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 6
- Corporate units in the system
- % franchised
- 74%
- vs corporate-owned
- Net growth (yr3)
- +6.2%
- Net unit change last year
- 3-yr CAGR
- +21.4%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 7
- Franchisor's next-year forecast
- Ceased ops
- 4.3%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 20 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 4 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 4
- Loan volume
- $3.3M
- Median loan
- $823K
- average
- Charge-off rate
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 2
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Angry Crab Shack's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 2 lenders with concentration factor
- Per-state charge-off rates across 2 states
- Startup risk premium and job creation velocity
- 2-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Angry Crab Shack presents caution-level risk due to corporate going concern status, anemic unit growth, litigation history, and thin profit margins relative to investment size.
Litigation (Item 3)
Angry Crab Shack Corporation and Angry Crab Franchise, LLC v. Angry Crab Tucson, LLC; Marco Guevara; and Valerie Irizarry (CV2019-006183, Superior Court of Arizona, Maricopa County). Filed April 5, 2019 alleging breach of franchise agreement, sublease agreement, guaranty agreement, loan agreement, unjust enrichment, and seeking declaratory judgment for termination rights. Franchisor's affiliate loaned $401,127.58 with no repayments made. Settled November 30, 2019 with dismissal of all litigation. Franchise agreements terminated for Tucson and Ahwatukee locations. Loan forgiven in exchange for asset assignment. Non-compete covenants imposed.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · CliftonLarsonAllen LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 22 / 100 rating
- 01HIGHGoing Concern status is False — indicates potential financial instability at corporate level
- 02MEDSlow unit growth of 6.2% YoY with only 23 units suggests limited system momentum and expansion challenges
- 03MINORTwo separate lawsuits (trademark infringement and franchise breach) demonstrate legal/operational friction and brand protection issues
- 04MINORHigh investment range ($411K-$1.2M) against modest average net income ($298K) yields marginal ROI and longer payback period
- 05MINOR5% royalty on $2.89M average revenue equals ~$144K annually — significant overhead that consumes 48% of average net income
- 06MINORNo Item 19 financial performance data limits ability to validate whether average figures represent typical franchisee experience or outliers
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Territory type | Population |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 200,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 1 year |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Arizona |
| Litigation count | 2 |
View Item 3 litigation summary
Angry Crab Shack Corporation and Angry Crab Franchise, LLC v. Angry Crab Tucson, LLC; Marco Guevara; and Valerie Irizarry (CV2019-006183, Superior Court of Arizona, Maricopa County). Filed April 5, 2019 alleging breach of franchise agreement, sublease agreement, guaranty agreement, loan agreement, unjust enrichment, and seeking declaratory judgment for termination rights. Franchisor's affiliate loaned $401,127.58 with no repayments made. Settled November 30, 2019 with dismissal of all litigation. Franchise agreements terminated for Tucson and Ahwatukee locations. Loan forgiven in exchange for asset assignment. Non-compete covenants imposed.
Items 10, 11
Training & Operations
- Classroom training
- 49 hrs
- On-the-job training
- 191 hrs
- Training location
- Mesa, Arizona
- Field support
- 191 hrs/yr
- On-site visits per year
- Time to open
- 12 mo
- From signing to launch
- POS system
- TP8300 Terminal
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: TP8300 Terminal
Item 20 · call current owners
Franchisee Contacts
34 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Angry Crab Shack · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Angry Crab Shack franchise?
The total investment to open a Angry Crab Shack franchise ranges from $412K – $1.2M, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Angry Crab Shack franchise owners earn?
According to Item 19 of the Angry Crab Shack FDD, the average gross sales per unit is $2.9M. The median is $2.6M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Angry Crab Shack's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Angry Crab Shack (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Angry Crab Shack franchise locations are there?
As of their most recent FDD filing, Angry Crab Shack has 23 total units in the United States, including 17 franchised units and 6 company-owned units. 2 new units were opened in the latest reporting year.
Is Angry Crab Shack a good franchise to buy?
FranchiseVerdict rates Angry Crab Shack as a A-grade franchise with a risk score of 22 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
If you represent Angry Crab Shack, you can request corrections or provide updated information.
Claim this brandOther Full-Service Restaurants franchises
Compare similar franchise opportunities in the Full-Service Restaurants category
Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.