Skrimp Shack
Bottom line
- Total investment $286K – $614K including a $45K franchise fee.
- Average unit revenue of $796K/year (median $794K).
- Rated MODERATE with a risk score of 56/100. SBA loan default rate of 0.0% across 11 loans (below the industry average).
- System growing at 30.0% CAGR over 3 years with 32 total units — strong expansion trajectory.
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 Skrimp Shack unit return on the cash you put in?
Unlevered ROIC · per unit
28%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Skrimp Shack units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.4M
on $7.2M purchase
Total debt
$5.7M
SBA $3.6M + senior + seller note
Overview
About
Franchisees operate casual seafood restaurants specializing in shrimp-based dishes, managing daily food preparation, customer service, inventory, and staff. Day-to-day operations involve food cost management, kitchen oversight, front-of-house service, and local marketing within their protected territory.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 6 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Skrimp Shack presents caution-level risk due to regulatory violations, non-disclosed profitability metrics, stagnant unit growth, and aggressive royalty extraction on uncertain net margins.
Score breakdown · what drove the 56 / 100 rating
- 01HIGHTwo regulatory settlements with Virginia SCC for selling unregistered franchises and FDD disclosure violations indicate compliance failures and potential fraud risk
- 02MEDNet income not disclosed in Item 19 prevents accurate ROI calculation; average revenue of $796k may not translate to reasonable profit margins for $286k-$614k investment
- 03MINOROnly 32 units with unknown growth trajectory suggests stagnant or declining system; no visibility into unit growth rate or franchisee retention
- 04MEDRoyalty structure (7% year 1, 6% thereafter) on ~$800k average revenue extracts $48k-$56k annually, creating cash flow pressure on undisclosed net income
- 05MINOR5-year term is shorter than industry standard (10 years), increasing renewal uncertainty and reducing franchisee investment protection
- 06MINORRegulatory history suggests potential ongoing compliance issues; unclear if additional violations exist or whether disclosure practices have improved
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
29 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Skrimp Shack · FDD (2021) PDF