Mason's Lobster Franchise Cost & 2025 FDD Data
69/100
Second tier
69 this brand51 Quick-Service Restaurants medianlikely 63–75: narrower with more SBA loans (high confidence)
Higher is better · an editorial assessment, not investment advice
#584 of 3,068 graded brands
Why a B: Helped by unit growth, legal record and transparency. Held back by scale. See all six factors
- Total investment
- $241K – $629K
- excl. real estate
- Avg gross sales
- $808K
- “Operational Franchise Outlets - 2024 Calendar Year Gross Sales”, 22 outlets; not profit
- SBA charge-off
- 5 resolved of 13 loans: too few to judge
Data from the FDD filing + SBA 7(a) records. Analysis by FranchiseVerdict · Methodology · Website · Report an error · Franchisor? Claim this listing
FranchiseVerdict summary · 2025 FDD
Per the 2025 FDD, a Mason's Lobster franchise requires a total initial investment of $241K – $629K, excluding real estate, including a $35K franchise fee. Once open, the ongoing royalty is 5.0%. Per the 2025 FDD, average gross sales were $808K (Item 19 group “Operational Franchise Outlets - 2024 Calendar Year Gross Sales”, 22 outlets; gross sales, not profit). Verdict grade: B (Second tier), an editorial assessment, not investment advice.
Sources: 2025 FDD · What one unit could make and lose →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium (issued 12 to 24 months ago; a newer filing is likely on file)
Evidence for the headline figures: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored7 of 7 headline figures on this page cite a page of the filing.
Overview
Quick verdict · vs Quick-Service Restaurants median
Top edge: green = better than the Quick-Service Restaurants median by more than 10%, red = worse by more than 10%, gray = within 10% or no benchmark. Source: FDD filings + SBA 7(a).
Data from public FDD filings and SBA records. Methodology
Bottom line
- RETURNSAverage gross sales of $808K/year (includes company-owned outlets; Item 19 group “Operational Franchise Outlets - 2024 Calendar Year Gross Sales”, 22 outlets; gross sales, not profit).
- GROWTHIn the latest Item 20 year, the number of franchised outlets grew by 3 (6 opened, 3 left the franchised system, 1 of them bought back by the franchisor).
- GROWTH+8 franchised outlets over the two years to 2024 (20 to 28, +40.0% in total, +18.3% a year compounded), with 32 total units.
AT STAKEOne unit at the Item 7 midpoint: $56K a year in payments on assumed SBA 7(a)-style terms.You put in about $87K of your own cash and personally guarantee a $348K loan. Assumptions are labeled in Sales; not investment advice.See what one unit could make and lose
Things to check before you sign (2)
- The franchisor keeps the right to compete inside your territory (Item 12, territory).
- Item 15 (owner participation) requires the owner, or a principal the franchisor approves, to run the business day to day. Ask how much of the business that principal must own.
Checked and clear: no auditor doubt that the franchisor can keep operating, no net loss of franchised outlets in the latest Item 20 years, no lawsuit naming the franchisor in Item 3 and the full filing on file, and an Item 19 average from 22 units. Not on file here, so ask: SBA charge-off rate against the category median, jury-trial waiver and supplier rebates.
What to do next
Step 1: Read the FDD itself.
Free: the franchisor must give it to you at least 14 days before you sign or pay. Or look it up in a state registry (Wisconsin, Minnesota, California). What to read first.
Step 2: Talk to current and former owners.
Free: Item 20 of the FDD lists every current owner and those who left last year, most with a phone number. Questions to ask.
Step 3: Talk to an SBA lender.
Free: the SBA's Lender Match, or the lenders already lending to this brand in the SBA section. Ask what you would personally guarantee and what the monthly payment would be. If you plan to use retirement savings, ask a CPA about the rules for that first.
Step 4: Have a franchise attorney review the FDD and agreement.
Free: your state bar's lawyer referral service can name franchise lawyers, and many offer a short first consultation. Bring the checks listed above.
Research steps, not investment or legal advice.
Can you afford it, and what does the money buy?
Entry cost (the Item 7 midpoint) is 11% below the Quick-Service Restaurants median ($487K).
Source: FDD 2025 · Items 5–7 (fees and startup costs)
Do you qualify? The filing states no minimum net worth or liquid capital. Ask Mason's Lobster Franchising LLC (Item 1: 77 Franklin Street, Annapolis, Maryland 21401) and your lender what they require, and keep living costs for the first year outside the deal.
Full Item 7 breakdown13 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $35K | $35K | |
| Construction and Leasehold Improvements | $110K | $354K | |
| Lease Deposits, Utility Deposits, and Rent – Three Months | $9.3K | $54.3K | |
| Furniture, Fixtures and Equipment | $50K | $80K | |
| Signage | $5K | $27.5K | |
| Business Management Systems | $3.75K | $4K | |
| Start-Up Marketing | $3.5K | $3.5K | |
| Initial Inventory and Uniforms | $4.4K | $12K | |
| Insurance Deposits – Three Months | $1.5K | $1.75K | |
| Travel for Initial Training | $0 | $2.5K | |
| Professional Fees | $13K | $30K | |
| Licenses and Permits | $1K | $4.5K | |
| Additional Funds – Three Months | $5K | $20K | |
| Total initial investment | $241K | $629K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. The total row is the total as printed in Item 7. Actual costs may fall outside this range depending on market and build-out scope.
Item 6 · what you pay once you are open
Ongoing fees
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
Marketing / ad fundThe filing's detailBrand-wide marketing pool. Brand Development Fund: up to 2% of Gross Sales, currently 1% of Gross Sales. Separately, Franchisee Directed Local Marketing requires spend of 1% (up to 2%) of monthly Gross Sales directly by franchisee on local mark... | 1.0% of gross sales |
| Technology feesUp to $500 per month technology fee; not currently assessed. | See the list |
| Renewal fee | $10,000 |
| Total fee loadbelow the Quick-Service Restaurants median of 7.0% (lean) | 6.0% of sales |
A 6.0% total fee load is below the Quick-Service Restaurants median of 7.0% (lean). More of each revenue dollar stays with the franchisee.
What do units actually make?
Average gross sales are 15% below the Quick-Service Restaurants median ($950K).
Source: FDD 2025 · Item 19 (sales and earnings)
Items 6 (other fees), 7 (startup costs) and 19 (sales and earnings) · assumptions labeled
What you could make and lose: one unit
What one Mason's Lobster unit would ask of you, from the filing's Item 7 total and labeled assumptions.
Average gross sales are $808K (FDD p.51), and the royalty and ad fund take about $48K of that a year (Item 6). This brand's Item 19 does not print cost lines. Enter your own from a lease quote, a payroll plan and calls with current owners. So this box does not estimate a profit. To cover the loan payment alone, one unit has to clear $56K a year after its food, labor, rent and other costs and the franchisor's fees.
How these figures are worked out
- Loan (assumption): 80% of the $435K Item 7 midpoint is a $348K loan, paid over 10 years at 10.5%: $56K a year. SBA 7(a)-style terms on a long-term rate; your lender sets yours.
What you put at risk
Your own cash in: about $87K Assumption (the part the loan does not cover of the $435K Item 7 midpoint), plus whatever anything Item 7 leaves out (its notes say what). The loan is $348K.
Personal guarantee. SBA 7(a) loans require a personal guarantee from anyone who owns 20% or more of the business. If the unit cannot pay, the lender can collect from you personally, which can include your savings and your home. The worst case is losing the cash you put in and still owing the rest of the loan.
Gross sales are not profit, and none of these figures is take-home pay until tax and every operating cost are paid. The assumptions are ours, not the filing's. Not investment advice.
Returns modelOne unit · several units · editable
One unit
One unit: what is left after the loan payment
Gross sales, minus the franchisor's fees and the operating costs, is the unit's EBITDA (earnings before interest, taxes, depreciation and amortization). Minus an assumed loan payment, that is what is left for you, before tax. Gross sales are not profit.
This brand's Item 19 does not print cost lines. Enter your own from a lease quote, a payroll plan and calls with current owners. Invested capital is the Item 7 total, which already includes its working-capital (additional funds) line.
Returns model · one unit
What would one Mason's Lobster unit leave you each year after the loan payment?
Item 19: $807,619 average for 22 outlets (Operational Franchise Outlets - 2024 Calendar Year Gross Sales). Use a figure for outlets like yours if yours differ.
Gross sales, not profit: the costs below decide what is left.
This brand's Item 19 does not print cost lines. Enter your own from a lease quote, a payroll plan and calls with current owners.
Illustrative category typicals, not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Item 7 midpoint of $241K to $629K
Item 7's $5K to $20K additional funds are already in the total
Left after the loan payment · per year
The unit's EBITDA minus the assumed loan payment. Before tax, depreciation and any cost your inputs leave out (insurance, accounting and legal, licenses, technology fees): not take-home pay.
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies COGS, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
Loan of $348K at 10.5% over 10 years, an assumption, not a quote. Return and payback are before tax, depreciation and the costs above. The loan usually needs your personal guarantee.
Buying several existing units? The acquisition scenario
Buying several units
What buying a few existing units could return
Prices an existing operator of a few units off the single-unit EBITDA above, after shared services, and finances it with an SBA 7(a) loan, a conventional loan and a seller note. It shows the yearly return on your cash (IRR), whether year-1 earnings cover the loan payments (DSCR) and how the price is paid for. It starts at 5 units; every deal term is an assumption you can change, and none is from the FDD.
Not modelled yet
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies COGS, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
This scenario starts from a per-unit EBITDA. Fill in the operating costs in the one-unit model above and it runs on that figure, or take it to the full ROI workbench, where the multi-unit and acquisition models accept your own per-unit economics.
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 · filed by Mason's Lobster Franchising LLC
Financial performance
- Range (low → high)
- $340K→$1.4MSource: 2025 FDD, page 51
- Cohort dispersion (min → max)
Percentile ranks within Quick-Service Restaurants
Each rank is among the Quick-Service Restaurants brands that report that figure (the count is under each bar).
vs Quick-Service Restaurants medians
How Mason's Lobster compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Who are you contracting with?
Mason's Lobster Franchising LLC.
Same franchisor, other program: Mason’s Famous Lobster Rolls. Each is a separate offering with its own page.
Item 1 (the franchisor) · who you're contracting with
The franchisor
Corporate structure & franchisor financials
- Legal entity
- Mason's Lobster Franchising LLC
- CEO title
- President
- Daniel Beck
- Incorporated in
- Delaware
- HQ
- 77 Franklin Street, Annapolis, Maryland 21401
Overview
About
Mason's Famous Lobster Rolls fast-casual restaurant franchise serving Maine-style lobster rolls, New England style soups, sides, desserts and beverages (may include alcohol) for on-premises dining, carryout, catering and delivery.
- CEO
- Daniel Beck
Is the system healthy?
+8 franchised outlets over the two years to 2024 (20 to 28, +40.0% in total, +18.3% a year compounded).
Source: FDD 2025 · Item 20 (outlets opened, closed and transferred)
Item 20 (outlet counts) · unit dynamics
The growth chart
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 1%
- vs corporate-owned
Last fiscal year · Item 20 rates and pipeline
- Reacquired
- 1
- Franchisor bought back
- Signed, not yet open
- 6
- 0.19 per open outlet · Item 20 Table 5
- Projected new
- 6
- Franchisor's next-year forecast
Item 20 · franchised units at year end
Franchised units rose from 20 in 2022 to 28 in 2024
Axis does not start at zero.
Source and method
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
Government records
SBA loan data
Matched to this brand from SBA 7(a) and 504 FOIA loan records.
- Loans on file
- 13
- SBA 7(a) loans matched to this brand, incl. those still being repaid
- Loan volume
- $3.1M
- Average loan
- $238K
- loan volume divided by loans
- Charge-off rate
- 5 resolved of 13 loans: too few to judge
- Limited SBA coverage: 13 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
- Paid in full
- 5 resolved of 13 loans: too few to judge
- Recent-loan charge-off
- 5 resolved of 13 loans: too few to judge
- Lenders
- 7
- Average interest rate
- 9.8%
- Jobs reported
- 176
- Lender concentration
- 31%
- top lender's share
Cumulative: every 7(a) loan matched to this brand in the SBA’s FOIA files, approved FY1991 onward. Historical lending data, not predictive of future performance. How SBA charge-off rates are calculated
Borrower mix: of the 13 loans with a recorded business age, 11 (85%) went to startups or businesses under two years old and 2 (15%) to established businesses or ownership changes.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Full SBA lending reportlenders · charge-off rate · trend
Lender network · SBA 7(a)
SBA Lending Report
Lender, state and yearly detail for Mason's Lobster from SBA 7(a) FOIA loan records.
- Average SBA guarantee
- 65%
- Average interest rate
- 9.8%
- Lender concentration
- 31%
- Jobs reported
- 176
Top 10 SBA lenders by loan count
| Loans | Volume | Charge-off |
|---|---|---|
| The Huntington National Bank | ||
| 4 | $938K | Not on file |
| Wilmington Savings Fund Society FSB | ||
| 3 | $576K | Not on file |
| Manufacturers and Traders Trust Company | ||
| 2 | $50K | Not on file |
| SouthState Bank, National Association | ||
| 1 | $260K | Not on file |
| Newtek Bank, National Association | ||
| 1 | $500K | Not on file |
A lender’s rate counts only its resolved loans, the loans that have finished (paid in full or charged off); a 0.0% often means few of its loans have finished. Under 10 resolved loans, the rate reads “Too few”.
Charge-off rate by state (top 10 by loans)
| State | Loans | Charged off | Rate |
|---|---|---|---|
| VA Virginia | 6 | 0 | Too few3 resolved |
| DE Delaware | 2 | 0 | Too few2 resolved |
| FL Florida | 2 | 0 | Too few0 resolved |
| NC North Carolina | 2 | 0 | Too few0 resolved |
| CO Colorado | 1 | 0 | Too few0 resolved |
Rate: charged-off loans over resolved loans (paid in full plus charged off), shown from 10 resolved loans. "Too few": under 10 resolved. The Loans column counts every approval in the window, including loans still being repaid.
SBA 7(a) loans approved per year
Borrower profile
The SBA's own business-age labels (2)
Source: SBA 7(a) FOIA loan-level data, matched to the brand by FranchiseVerdict.
What are the risks?
Main risk in the grade: scale. The reasons are below.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Verdict grade + FDD Items 3 (litigation), 4 (bankruptcy), 8 (required suppliers), 16 (what you may sell), 21 (audited financials)
Risk and legal
Grade B: Second tier, 69/100 (category median 51); the full grade is at the top of the page.
How the grade is built
Why a B, factor by factor
- Financial health NeutralAudited financials; no going-concern doubt
- Unit economics NeutralAvg gross sales $808K on a $435K investment midpoint, 1.9x (gross sales, not profit)
- Unit growth Helps+8 franchised outlets over the two years to 2024 (20 to 28, +40.0% in total, +18.3% a year compounded); turnover 9.4%
- Scale Weighs on it, weakest dimension28 franchised units, +4 company-owned (32 in all); franchising since 2016; mostly company-owned (1% franchised)
- Legal HelpsNo litigation naming the franchisor in Item 3
- Transparency HelpsItem 19 discloses financial performance; audited financials; no franchisor financial figures on file
From the six scored dimensions, an editorial assessment, not investment advice. How the score is built
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes
Supplier relationship · Items 8 & 16
Ask what the franchisor earns on the supplies it sells you or the rebates it takes (Item 8).
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
What are you signing up for?
Ongoing fees run about 6.0% of sales (royalty + ad fund), before your own operating costs.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12 (territory), 15 (owner participation) and 17 (renewal, termination and disputes)
Contract and territory detail
| Allowed renewals | 2 |
|---|---|
| Protected territory | Yes |
| Exclusive territory | No |
| Territory size | “Franchisee is granted a Designated Territory around the approved Restaurant Location; franchisor will not open or license another Mason's Famous Lobster Rolls Restaurant within that Designated Territory while franchisee is in compliance, but the territory is not contractually 'exclusive' and franchisor reserves broad rights to compete via other channels/trademarks/acquisitions.” |
| Franchisor can compete | Yes |
| Who runs it (Item 15) | The owner, or a principal the franchisor approves, must run it |
| Non-compete (years) | 2 years |
| Non-compete (miles) | 25 mi |
| Right of first refusal | Yes |
| Transfer requires consent | Yes |
| Mandatory arbitration | Yes |
| Arbitration location | Sussex County, Delaware |
| Governing law | Delaware |
Items 10 (financing), 11 (training and support)
Training and operations
- Classroom training
- 17 hrs
- On-the-job training
- 23 hrs
- Training location
- Annapolis, Maryland
- Time to open
- 9–18 mo
- From signing to launch (FDD p.29)
- Site selection
- franchisee_with_franchisor_approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Toast
- Operating tech stack
Items 5 (initial fees) & 11 (training and support)
Franchisor support
Franchisee contacts
We hold no owner list for this brand. Item 20 of the FDD lists the current and former owners; the free FDD is the source.
Frequently asked questions
How much does it cost to open a Mason's Lobster franchise?
Per the 2025 FDD, the total investment to open a Mason's Lobster franchise ranges from $241K to $629K, with an initial franchise fee of $35K. This is the Item 7 total in the Franchise Disclosure Document (FDD): the startup costs the franchisor lists, such as build-out, equipment, inventory and working capital. The filing says these totals do not include real estate.
What do Mason's Lobster franchise owners earn?
According to Item 19 of the Mason's Lobster FDD, average gross sales were $808K (Item 19 group “Operational Franchise Outlets - 2024 Calendar Year Gross Sales”, 22 outlets; gross sales, not profit). Includes company-owned outlets. What an owner keeps depends on location, operating costs and management.
Who owns Mason's Lobster?
Mason's Lobster is franchised by Mason's Lobster Franchising LLC. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Mason's Lobster 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 Mason's Lobster FDD and qualifies whose outlets they describe.
What is Mason's Lobster's franchise failure rate?
There is no published franchise failure rate, and Mason's Lobster has too few resolved SBA 7(a) loans on file (fewer than 10) to show an SBA charge-off rate that would mean anything. The SBA charge-off rate is the share of a brand's resolved SBA 7(a) loans to its franchisees that the SBA wrote off, including purchased guarantees. Resolved means paid in full or charged off; active loans are excluded because their outcome is not yet known. It is a lending outcome, not a count of closed businesses. Review the turnover and closure figures in Item 20 of the FDD and speak with current and former franchisees.
How many Mason's Lobster franchise locations are there?
Per the 2025 FDD, Mason's Lobster has 28 franchised units and 4 company-owned (32 in all). In the latest year, the number of franchised outlets grew by 3 (6 opened, 3 left the franchised system, 1 of them bought back by the franchisor).
Is Mason's Lobster a good franchise to buy?
FranchiseVerdict gives Mason's Lobster a B Verdict grade (Second tier) with a verdict score of 69 out of 100 (higher is better), an editorial assessment, not investment advice. Helped by unit growth (+8 franchised outlets over the two years to 2024: 20 to 28, +40.0% in total, +18.3% a year compounded), legal record and transparency. Held back by scale (28 franchised units, +4 company-owned: 32 in all). The “Why a B” section on this page lists all six dimensions and any adjustment. Speak with current franchisees before making any investment decision.
Other Quick-Service Restaurants franchises
Similar investment first, then by grade
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.