Angry Crab Shack
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). Estimated payback in 2.7 years.
- Rated MODERATE with a risk score of 56/100. SBA loan default rate of 0.0% across 4 loans (below the industry average).
- 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
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Angry Crab Shack unit return on the cash you put in?
Unlevered ROIC · per unit
54%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Angry Crab Shack units return on equity?
Equity IRR · 5-yr
26.9%
3.29× MOIC
Year-1 DSCR
3.05×
EBITDA ÷ debt service
Equity required
$13.2M
on $26.0M purchase
Total debt
$12.8M
SBA $5.0M + senior + seller note
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
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.
Score breakdown · what drove the 56 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
34 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Angry Crab Shack · FDD (2025) PDF