Topsail SteamerFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Topsail Steamer franchise requires a total initial investment of $242K – $399K, including a $45K franchise fee and an ongoing 7.0% royalty[2]. Per the 2025 FDD, average unit revenue was $897K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $242K – $399K
- 13th pct Service Resta…
- Avg gross sales
- $897K
- 8th pct Service Resta…
- Royalty
- 7.0%
- 42nd pct Service Resta…
- Units
- 10
- 21st pct Service Resta…
- SBA default
- N/A
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 franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $242K – $399K including a $45K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $897K/year.
- Verdict A (Top Quintile) with a risk score of 30/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Topsail Steamer Franchise, LLC
- Ultimate parent
- Topsail Steamer LLC
- CEO title
- Owner
- Danielle Mahon
- CEO experience
- 7 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- DE
- HQ
- 29 Sandy Lane, Surf City, North Carolina 28445
- Auditor
- DA Advisory Group PLLC
- Audited financials
- Franchisor revenue
- $0
- vs $0 prior year
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Overview
About
Topsail Steamer franchisees operate fast-casual seafood restaurants focused on steamed crustaceans and shellfish. Day-to-day operations include sourcing fresh seafood, steaming/cooking to order, managing customer service, inventory management, and maintaining health/safety compliance in a quick-service environment.
- CEO
- Danielle Mahon
- Headquarters
- NC
- Founded
- 2022
- FDD year
- 2025
- States available
- 3
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $45K | $45K |
| Working capital (3–6 mo) | $25K | $25K |
| Equipment, build-out, other | $172K | $329K |
| Total initial investment | $242K | $399K |
Source: Topsail Steamer 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
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
$90K
10.0% margin
Unlevered ROIC
26%
EBITDA / total invested capital
Payback
3.9 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $242K – $399K
- Better than avg vs category
- Liquid capital req'd
- $25K – $25K
- Better than avg vs category
- Franchise fee
- $45K – $45K
- Better than avg vs category
- Royalty
- 7.0%
- Gross Revenue · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 33.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $25 |
| Transfer fee | $5K |
| Renewal fee | $10 |
| Total fee load | 33.0% of rev |
At 33.0% total fee load, roughly $296K per year goes to the franchisor before you pay a single operating expense.
Financial Performance
- Avg gross sales
- $897K
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- affiliate-owned
- Sample size
- 6 units
- vs category median 13 · small
- Range (low → high)
- $104K→$1.7M
- Cohort dispersion (min → max)
- Transparency
- 0 / 5
- vs category median 4 / 5 · below
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How Topsail Steamer Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 10
- Opened
- 3
- 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
- 5
- Corporate units in the system
- % franchised
- 50%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 7
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 16 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.
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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Early-stage seafood steamer concept with explosive growth claims but zero financial transparency makes ROI validation impossible and increases execution risk.
Litigation (Item 3)
No litigation is required to be disclosed in this Item.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · DA Advisory Group PLLC⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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 30 / 100 rating
- 01MEDNo average revenue or net income disclosed in FDD Item 19 — impossible to validate ROI claims or unit economics
- 02MINORExplosive 500% YoY unit growth (from 2 to 10 units) suggests either rapid expansion or recent launch; unproven business model at scale
- 03MEDInitial investment range of $242K–$398K is substantial with no disclosed profitability benchmarks to justify it
- 04MEDOnly 10 total units system-wide indicates very early-stage franchise with minimal operating history and limited comparable unit data
- 05MINOR7% royalty on weekly gross revenue (not net) compounds pressure on already-opaque unit economics
- 06HIGHNo litigation disclosed is positive, but combined with lack of financial transparency raises questions about FDD completeness
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 |
| Allowed renewalsℹ | 2 |
| Territory type | Zip Codes / Geographic boundaries |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 5 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | North Carolina |
| 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
- 15 hrs
- On-the-job training
- 30 hrs
- Training location
- On-site and franchisor location
- Ongoing training
- Required
- POS system
- Clover
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Clover
Item 20 · call current owners
Franchisee Contacts
16 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Topsail Steamer · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Topsail Steamer franchise?
The total investment to open a Topsail Steamer franchise ranges from $242K – $399K, with an initial franchise fee of $45K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Topsail Steamer franchise owners earn?
According to Item 19 of the Topsail Steamer FDD, the average gross sales per unit is $897K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Topsail Steamer's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Topsail Steamer (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 Topsail Steamer franchise locations are there?
As of their most recent FDD filing, Topsail Steamer has 10 total units in the United States, including 6 franchised units and 5 company-owned units. 3 new units were opened in the latest reporting year.
Is Topsail Steamer a good franchise to buy?
FranchiseVerdict rates Topsail Steamer as a A-grade franchise with a risk score of 30 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.