Montauk Lobster House Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Montauk Lobster House is a seafood franchise serving lobster rolls, seafood, and coastal fare. Franchisees run the restaurants, managing the kitchen, service, and staffing.
FranchiseVerdict summary · 2026
A Montauk Lobster House franchise requires a total initial investment of $148K – $294K, including a $30K franchise fee and an ongoing 5.0% royalty[2]. The 2023 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2023 FDD issuance
Overview
- Investment
- $148K – $294K
- 6th pct Service Resta…
- Avg gross sales
- N/A
- 2 outlets
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 2
- 4th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Full-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 $148K – $294K including a $30K franchise fee, 5.0% ongoing royalty.
- RETURNSNewly formed franchisor (NY corporation formed March 16, 2021); audited startup balance sheet only as of February 16, 2023 with no operations, revenue, or income statement.
- RISKVerdict D (Below average), verdict score 29/100 (higher is better).
- DATANo 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
Corporate structure & franchisor financials
- Legal entity
- Montauk Lobster House, Inc.
- Parent company
- None
- CEO title
- CEO
- Diego Flores
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- NY
- HQ
- 716 Montauk Highway, Montauk, NY 11954
- Auditor
- Jose E. Smith, C.P.A.
- Audited financials
Overview
About
- CEO
- Diego Flores
- Headquarters
- NY
- Founded
- 2021
- FDD year
- 2023
- States available
- 1
Can you afford it, and what does the money buy?
Entry cost runs 81% below the typical full-service restaurants franchise.
Source: FDD 2023 · Items 5–7
Full Item 7 breakdown31 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee (Dine In Restaurant)not refundable | $30K | $30K | |
| Traveling and Living Expenses while Training (Dine In Restaurant) | $500 | $3K | |
| Architectural/Engineering (Dine In Restaurant) | $3K | $6K | |
| Furniture, Fixtures, and Equipment (Dine In Restaurant) | $20K | $40K | |
| Real Property Rent and Security Deposits (Dine In Restaurant) | $9K | $21K | |
| Leasehold Improvements (Dine In Restaurant) | $30K | $100K | |
| Computer and POS System (Dine In Restaurant) | $2K | $4K | |
| Initial Inventory and Supplies (Dine In Restaurant) | $10K | $20K | |
| Signage (Dine In Restaurant) | $3K | $5K | |
| Grand Opening Advertising (Dine In Restaurant) | $3K | $6K | |
| Licenses, Permits, and Certifications (Dine In Restaurant) | $3K | $5K | |
| Insurance (3 Months) (Dine In Restaurant) | $5K | $7K | |
| Professional Fees (Dine In Restaurant) | $750 | $3K | |
| Additional Funds (3 months) (Dine In Restaurant) | $30K | $45K | |
| Initial Franchise Fee (Fast Casual Concept)not refundable | $30K | $30K | |
| Traveling and Living Expenses while Training (Fast Casual Concept) | $500 | $3K | |
| Architectural/Engineering (Fast Casual Concept) | $3K | $6K | |
| Furniture, Fixtures, and Equipment (Fast Casual Concept) | $20K | $40K | |
| Real Property Rent and Security Deposits (Fast Casual Concept) | $18K | $33K | |
| Leasehold Improvements (Fast Casual Concept) | $50K | $150K | |
| Total initial investment | $595K | $1.1M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $148K – $294K
- Top 40% of category vs category
- Liquid capital req'd
- $30K – $45K
- Top 40% of category vs category
- Franchise fee
- $30K – $30K
- Top 40% of category vs category
- Royalty
- 5.0%
- percentage · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $300 |
| Training fee | $250 |
| Transfer fee | $0 |
| Renewal fee | $0 |
| Inventory (initial) | $10K – $20K |
| Total fee load | 6.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Montauk Lobster House 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 Montauk Lobster House unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
35%
Within 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: 2023 FDD
Financial Performance
Newly formed franchisor (NY corporation formed March 16, 2021); audited startup balance sheet only as of February 16, 2023 with no operations, revenue, or income statement.
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 6.0% — below the Full-Service Restaurants average of 7.6%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Multi-unit rate
Only 13% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
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 Full-Service Restaurants averages
How Montauk Lobster House Compares
Is the system healthy?
Source: FDD 2023 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 2
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
- Multi-unit owners
- 12.5%
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 1
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 1 state reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
1
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
No litigation is required to be disclosed in this Item.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Jose E. Smith, C.P.A.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 29 / 100 verdict
- 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
- 04MEDExtremely limited franchise track record with only 2 locations makes performance validation nearly impossible
- 05MED5% royalty on undisclosed revenue base creates opacity; actual franchisee take-home is unverifiable
- 06MINORRestaurant sector with high operational complexity and typically thin margins (3-9%) — high failure risk
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2023 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | exclusive |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory radius | 3 mi |
| Territory population | 30,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | New York |
| Jury trial waiver | No |
| Governing law | NY |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in this Item.
Items 10, 11
Training & Operations
- Classroom training
- 14 hrs
- On-the-job training
- 68 hrs
- Training location
- Affiliate restaurant in New York or designated franchisor training center
- Ongoing training
- Required
- Time to open
- 4 mo
- From signing to launch
- Franchisor financing
- Not offered
- Item 10
- POS system
- Harbor Touch POS System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Harbor Touch POS System
Item 20 · call current owners
Franchisee Contacts
1 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Montauk Lobster House · FDD (2023) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Montauk Lobster House franchise?
The total investment to open a Montauk Lobster House franchise ranges from $148K – $294K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Montauk Lobster House franchise owners earn?
Montauk Lobster House 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 Montauk Lobster House 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 Montauk Lobster House FDD and qualifies whose outlets they describe.
What is Montauk Lobster House's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Montauk Lobster House (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Montauk Lobster House franchise locations are there?
As of their most recent FDD filing, Montauk Lobster House has 2 total units in the United States, including 0 franchised units and 2 company-owned units.
Is Montauk Lobster House a good franchise to buy?
FranchiseVerdict rates Montauk Lobster House as a D-grade franchise with a verdict score of 29 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
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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.