Montauk Lobster House
Bottom line
- Total investment $148K – $395K including a $30K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated CAUTION with a risk score of 77/100.
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
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 Montauk Lobster House unit return on the cash you put in?
Unlevered ROIC · per unit
40%
In Yale's "attractive" band (30–60%)
Overview
About
Franchisees operate casual seafood restaurants, likely centered on lobster dishes and coastal-themed dining. Daily operations include inventory management of fresh seafood, kitchen operations, front-of-house service, staff management, and food cost control in a capital-intensive, labor-dependent restaurant model.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 7 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.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
A micro-franchise system (2 units) with franchisor going concern issues, zero transparency on unit economics, and no verifiable performance data represents substantial investment risk with inadequate due diligence data.
Score breakdown · what drove the 77 / 100 rating
- 01MINOROnly 2 units in system with unknown/likely stagnant growth trajectory raises viability concerns
- 02HIGHGoing Concern status = FALSE indicates potential financial distress or instability at franchisor level
- 03MEDNo Item 19 (average unit volumes) disclosed — inability or unwillingness to share revenue data is critical red flag
- 04MINORNo average net income data provided — impossible to assess actual profitability or ROI on $148K-$395K investment
- 05MEDExtremely limited franchise track record with only 2 locations makes performance validation nearly impossible
- 06MED5% royalty on undisclosed revenue base creates opacity; actual franchisee take-home is unverifiable
- 07MINORRestaurant sector with high operational complexity and typically thin margins (3-9%) — high failure risk
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
8 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Montauk Lobster House · FDD (2023) PDF