Long John Silver's Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Long John Silver's is a quick-service seafood franchise known for battered fried fish, shrimp, and hushpuppies. Franchisees run standalone or non-traditional locations managing food prep, service, and staffing.
FranchiseVerdict summary · 2026
A Long John Silver's franchise requires a total initial investment of $1.1M – $4.2M, including a $35K franchise fee and an ongoing 5.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 27.3% charge-off rate across 45 loans[1]. FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $1.1M – $4.2M
- 95th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 5.0%
- 11th pct Service Resta…
- Units
- 485
- 89th pct Service Resta…
- SBA charge-off
- 27.3%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $1.1M – $4.2M including a $35K franchise fee, 5.0% ongoing royalty.
- RETURNSTotal franchisor revenues for FY ended Dec 29, 2024 = $20,636,426 (Royalties and other franchise income $10,689,134; Advertising fund revenues $9,313,929; Other operating revenues $633,363). Company-owned restaurant net sales of $196,723,369 are reported separately below franchisor operating loss in the consolidated statements of operations and are not included in franchisor revenues.
- RISKVerdict D (Below average), verdict score 34/100 (higher is better). SBA loan charge-off rate of 27.3% across 45 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- FLAGBankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Long John Silver's, LLC
- Parent company
- LJS Partners LLC
- Ultimate parent
- Four Oaks Partners, LLC
- CEO title
- Chief Executive Officer
- Nate Fowler
- Incorporated in
- DE
- HQ
- 10350 Ormsby Park Place, Suite 300, Louisville, KY 40223
- Auditor
- Coulter & Justus, P.C.
- Audited financials
- Franchisor revenue
- $20.6M
- vs $22.2M prior year
Independent franchisee associations
- Independent Franchisee Association
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Overview
About
- CEO
- Nate Fowler
- Headquarters
- KY
- Founded
- 1969
- FDD year
- 2025
- States available
- 34
Can you afford it, and what does the money buy?
Entry cost runs 297% above the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $35K | $35K |
| Working capital (3–6 mo) | $50K | $130K |
| Equipment, build-out, other | $988K | $4.0M |
| Total initial investment | $1.1M | $4.2M |
Source: Long John Silver's 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $1.1M – $4.2M
- Bottom third — review vs category
- Liquid capital req'd
- $50K – $130K
- Bottom third — review vs category
- Franchise fee
- $35K – $35K
- Middle of category vs category
- Royalty
- 5.0%
- percentage · typical 6–8%
- Ad fund
- 5.0%
- typical 3–5%
- Total fee load
- 10.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 5.0% of gross sales |
| Technology fee | $6K |
| Training fee | $73K |
| Transfer fee | $5K |
| Renewal fee | $4K |
| Inventory (initial) | $25K – $35K |
| Total fee load | 10.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Long John Silver's did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Long John Silver's unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
3%
Below the 30–60% attractive-franchise band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
Total franchisor revenues for FY ended Dec 29, 2024 = $20,636,426 (Royalties and other franchise income $10,689,134; Advertising fund revenues $9,313,929; Other operating revenues $633,363). Company-owned restaurant net sales of $196,723,369 are reported separately below franchisor operating loss in the consolidated statements of operations and are not included in franchisor revenues.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 10.0% — above the Quick-Service Restaurants average of 7.9%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System contracting at -29.4% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants averages
How Long John Silver's Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 485
- Opened
- 2
- Last reporting year
- Closed
- 15
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 7
- Term expired, not renewed (per Item 20)
- Turnover rate
- 17.5%
- Company-owned
- 228
- Corporate units in the system
- % franchised
- 53%
- vs corporate-owned
- Net growth (3-yr)
- -29.4%
- Net unit change over 3 years
- 3-yr CAGR
- -29.4%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 42
- Terminated (3yr)
- 2
- Non-renewed (3yr)
- 1
- Transfers (3yr)
- 5
- Reacquired (3yr)
- 9
- Franchisor bought back
- Transfer rate
- 0.8%
- Owners selling to other franchisees
- Continuity rate
- 86.0%
- Units that stayed open
- Termination rate
- 0.4%
- Franchisor-initiated terminations
- Ceased ops
- 0.7%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 16 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.
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 45
- Loan volume
- $26.0M
- Median loan
- $350K
- 50th percentile
- Charge-off rate
- 27.3%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 72.7%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 28
- Defaults
- 12
- Typical loan rate
- 5.7%
- avg rate to borrowers
- Franchised industry avg
- 21.5%
- brand above franchise avg ↑
- Jobs supported
- 1,561
- 6.0 per loan
- Lender concentration
- 20%
- top lender's share
Borrower mix: 100% went to startups / new businesses, 0% to established operators
Franchise vs independent — in limited-service restaurants, franchised businesses charge off at 21.5% vs 25.0% for independents — franchising is associated with 14% lower SBA default risk in this category.
Vintage analysis
Long John Silver's charge-off rate by loan vintage
Top lenders financing Long John Silver's franchisees
Showing 3 of 28 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Long John Silver's's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 20-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
A 27.3% charge-off rate means roughly 1 in 4 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 27.3% — 70% above the 16.0% national norm, i.e. higher lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Long John Silver's presents high-risk investment opportunity due to accelerating unit decline, lack of financial transparency, and unclear path to profitability in a shrinking system.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $35,000
Bankruptcy (Item 4)
Disclosed in last 7 years
Officer Tim Newton (CTO) was CTO of ASAP, Inc. which filed Chapter 7 in Delaware Bankruptcy Court (Case No. 24-10681-MFW) on April 2, 2024, as part of bankruptcy of parent Waitr Holdings Inc. (Case No. 24-10676-MFW). No bankruptcy of LJS or its principals.
Audited financials (Item 21)
Yes · Coulter & Justus, P.C.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 34 / 100 verdict
- 01MEDSevere unit decline of 13.5% YoY (485 units) indicates systemic contraction and loss of franchisee confidence
- 02MINORNo average revenue or net income disclosure (Item 19) prevents informed ROI analysis and suggests poor unit economics
- 03MED20-year term locks franchisees into declining brand with limited exit options
- 04MINORNon-traditional restaurant format requiring 6% royalty on likely lower volumes suggests margin compression strategy
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 10.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 1 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 1 year |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 14 |
| Curable defaultsℹ | 7 |
| Mandatory arbitration | No |
| Arbitration location | Not applicable – litigation only in Jefferson County, KY |
| Jury trial waiver | No |
| Governing law | KY |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 0 hrs
- On-the-job training
- 160 hrs
- Training location
- LJS certified training restaurants operated by franchisees or LJS/its affiliates and at meeting facilities
- Ongoing training
- Required
- Time to open
- 18 mo
- From signing to launch
- Site selection
- LJS reviews, approves, disapproves or conditionally approves proposed sites. Franchisee selects, LJS must approve.
- Franchisor financing
- Not offered
- Item 10
- POS system
- Xenial Cloud POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Xenial Cloud POS
Item 20 · call current owners
Franchisee Contacts
26 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Long John Silver's · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Long John Silver's franchise?
The total investment to open a Long John Silver's franchise ranges from $1.1M – $4.2M, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Long John Silver's franchise owners earn?
Long John Silver's does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the Long John Silver's FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Long John Silver's FDD and qualifies whose outlets they describe.
What is Long John Silver's's franchise failure rate?
Based on SBA 7(a) loan data, Long John Silver's has a charge-off rate of 27.3% across 45 loans, meaning 27.3% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Long John Silver's franchise locations are there?
As of their most recent FDD filing, Long John Silver's has 485 total units in the United States, including 257 franchised units and 228 company-owned units. 2 new units were opened in the latest reporting year.
Is Long John Silver's a good franchise to buy?
FranchiseVerdict rates Long John Silver's as a D-grade franchise with a verdict score of 34 out of 100 (higher is better), 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 Long John Silver's, you can request corrections or provide updated information.
Other Quick-Service Restaurants franchises
Compare similar franchise opportunities in the Quick-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.