Cousins Maine Lobster
Bottom line
- Total investment $267K – $969K including a $40K franchise fee.
- Average unit revenue of $891K/year (median $636K).
- Rated STRONG with a risk score of 52/100. SBA loan default rate of 0.0% across 13 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 Cousins Maine Lobster unit return on the cash you put in?
Unlevered ROIC · per unit
20%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Cousins Maine Lobster units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.4M
on $7.1M purchase
Total debt
$5.7M
SBA $3.6M + senior + seller note
Overview
About
Franchisees operate mobile food carts, brick-and-mortar restaurants, or hybrid concepts serving lobster rolls and seafood dishes. Day-to-day operations include food prep, customer service, inventory management, permitting compliance (especially for mobile units), seasonal demand navigation, and payment of the greater of 6% or $3,500 monthly royalties to the franchisor.
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
Cousins Maine Lobster presents meaningful risk: a collapsing franchise system (down 80% in unit count), undisclosed profitability, recent franchisee litigation, and high fixed royalties that may exceed profits at lower revenue levels.
Score breakdown · what drove the 52 / 100 rating
- 01MEDUnit count declined 20% year-over-year (4 units remaining) — severe system contraction signals fundamental business model or support issues
- 02MEDNet income not disclosed in FDD Item 19 — inability to validate profitability claims against $267K-$969K investment range
- 03HIGHRecent litigation (July 2024) shows franchisor enforcement action; settlement suggests franchisee distress and potential operational/support gaps
- 04MINORRoyalty floor of $3,500/month ($42K annually) creates breakeven pressure on lower-performing units, especially with average revenue of $891K
- 05MINORWide investment range ($702K spread) indicates inconsistent unit economics and unclear path to ROI across different formats
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
21 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Cousins Maine Lobster · FDD (2025) PDF