Nautical BowlsFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A NAUTICAL BOWLS franchise requires a total initial investment of $222K – $409K, including a $40K franchise fee and an ongoing 6.0% royalty[2]. Per the 2024 FDD, average unit revenue was $440K[2]. SBA 7(a) loans show a 3.0% charge-off rate across 67 loans[1]. Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $222K – $409K
- 12th pct Service Resta…
- Avg gross sales
- $440K
- 2nd pct Service Resta…
- Royalty
- 6.0%
- 26th pct Service Resta…
- Units
- 63
- 38th pct Service Resta…
- SBA default
- 3.0%
- system-wide median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
The system grew 121% year-over-year. Fast growth means demand, but can strain support.
25% cash-on-cash return (based on Owner's Discretionary). Within the 15-30% range most franchise investors consider acceptable.
Bottom line
- Total investment $222K – $409K including a $40K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $440K/year, with an estimated 25% cash-on-cash return (based on Owner's Discretionary).
- Verdict B (Above Average) with a risk score of 55/100. SBA loan charge-off rate of 3.0% across 67 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- System growing at 1000.0% CAGR over 3 years with 63 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Nautical Bowls Franchising, LLC
- Predecessor
- or parent company
- Prior franchisor entity
- Incorporated in
- TX
- HQ
- 4640 Palmer Pointe Rd, Excelsior, Minnesota 55331
- Auditor
- DNJ & ASSOCIATES
- Audited financials
- Franchisor revenue
- $933K
- vs $1.1M prior year
Overview
About
Nautical Bowls franchisees operate fast-casual açai bowl and smoothie restaurants focused on health-conscious consumers. Day-to-day operations include preparing fresh fruit bowls and beverages, managing inventory and food costs, staffing the counter and kitchen, and driving local marketing to build customer loyalty. Most locations are small-footprint retail spaces designed for high-volume, quick-service transactions.
- CEO
- Peter Taunton
- Headquarters
- MN
- Founded
- 2020
- FDD year
- 2024
- States available
- 17
FDD Item 7 · 2024 filing · 18 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $40K | $40K | |
| Lease Security Deposit | $3K | $20K | |
| Rent | $2K | $7K | |
| Architect and Permitting Fees | $13K | $20K | |
| Water, sewer, and Municipality Impact Fees | $0 | $20K | |
| Leasehold Improvements | $103K | $203K | |
| Signage | $6K | $14K | |
| Fixtures, Furniture, and Equipment | $32K | $40K | |
| POS System | $1K | $3K | |
| Back Office Computer Hardware and Software | $1K | $1K | |
| Smallwares, Uniforms, and Initial Supplies | $3K | $3K | |
| Utility Deposits | $500 | $600 | |
| Professional Services | $3K | $5K | |
| Initial Inventory | $8K | $8K | |
| Insurance | $2K | $3K | |
| Training Expenses | $1K | $3K | |
| Grand Opening Advertising | $1K | $5K | |
| Additional Funds - Three months | $5K | $15K | |
| Total initial investment | $222K | $409K |
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.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$44K
10.0% margin
Unlevered ROIC
14%
EBITDA / total invested capital
Payback
7.4 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $222K – $409K
- Better than avg vs category
- Liquid capital req'd
- $5K – $15K
- Better than avg vs category
- Franchise fee
- $40K – $100K
- Better than avg vs category
- Royalty
- 6.0%
- percentage · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
- Payback period
- 4.0 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $300 |
| Transfer fee | $2K |
| Renewal fee | $3K |
| Inventory (initial) | $10K – $11K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $440K
- Per unit, per year
- Median gross sales
- N/A
- Avg owner's discretionary
- $80K
- Reported as Owner's Discretionary in FDD Item 19
- Cash-on-cash
- 25.2%
- Based on Owner's Discretionary / investment midpoint
- Item 19 type
- Projected and Actual
- Sample size
- 23 units
- vs category median 13
- Range (low → high)
- $262K→$641K
- Cohort dispersion (min → max)
- Quartile band
- $262K→$641K
- Bottom 25% → top 25%
- Transparency tier
- limited
- Categorical assessment of disclosure depth
- Reporting year
- 2023
- Fiscal year the figures cover
- Transparency
- 9 / 5
- vs category median 4 / 5 · above
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How Nautical Bowls Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 63
- Opened
- 39
- Last reporting year
- Closed
- 8
- Turnover rate
- 12.7%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 98%
- vs corporate-owned
- Net growth (yr3)
- +121.4%
- Net unit change last year
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 4
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 17 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.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 67
- Loan volume
- $17.5M
- Median loan
- $306K
- 50th percentile
- Charge-off rate
- 3.0%
- 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)
- 80.0%
- 5-yr charge-off
- 20.0%
- Loans approved 2021+
- Active lenders
- 25
- Defaults
- 2
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Nautical Bowls'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
- 6-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Nautical Bowls presents high-risk investment profile due to active multi-party litigation alleging fraud and misrepresentation, false going concern status, and marginal unit-level economics that may not support corporate royalties and profitability targets.
Litigation (Item 3)
3 case reference(s): 0 pending, 0 settled.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · DNJ & ASSOCIATES
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 55 / 100 rating
- 01HIGHThree active lawsuits filed December 2023 alleging fraud, misrepresentation, and deceptive trade practices by former franchisees
- 02HIGHGoing Concern designation is FALSE, indicating potential financial instability at corporate level
- 03MINORNet income of $79,712 on $440,000 average revenue (18.1% margin) may be insufficient to cover $26,550 annual royalties (6% of revenue) plus other operating expenses
- 04HIGHAggressive unit growth (121.4% YoY) during period of active litigation suggests potential quality control issues or desperation to recruit
- 05MINORHigh investment range ($222,250–$409,350) combined with modest profitability creates extended payback period and elevated financial risk
- 06HIGHFranchise fee of $39,500 is non-recoverable in context of litigation and going concern status
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Territory type | Radius |
| Protected territory | Yes |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 3 |
View Item 3 litigation summary
3 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 14 hrs
- On-the-job training
- 13 hrs
- Training location
- On-site and at franchisor location
- Site selection
- franchisor
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
35 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
NAUTICAL BOWLS · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a NAUTICAL BOWLS franchise?
The total investment to open a NAUTICAL BOWLS franchise ranges from $222K – $409K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do NAUTICAL BOWLS franchise owners earn?
According to Item 19 of the NAUTICAL BOWLS FDD, the average gross sales per unit is $440K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is NAUTICAL BOWLS's franchise failure rate?
Based on SBA 7(a) loan data, NAUTICAL BOWLS has a charge-off rate of 3.0% across 67 loans, meaning 3.0% 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 NAUTICAL BOWLS franchise locations are there?
As of their most recent FDD filing, NAUTICAL BOWLS has 63 total units in the United States, including 4 franchised units and 1 company-owned units. 39 new units were opened in the latest reporting year.
Is NAUTICAL BOWLS a good franchise to buy?
FranchiseVerdict rates NAUTICAL BOWLS as a B-grade franchise with a risk score of 55 out of 100, 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.
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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.