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FranchiseVerdict

How Much Does a Montauk Lobster House Franchise Cost?

Data from the 2023 Franchise Disclosure Document

Investment Summary

Total Investment

$148K – $395K

Franchise Fee

$30K

Royalty

5.0%

Ad Fund

1.0%

Cost Breakdown

Initial Franchise Fee

The initial franchise fee for Montauk Lobster House is $30K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.

Total Investment Range

Opening a Montauk Lobster House franchise requires a total investment of $148K – $395K. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.

Working capital alone ranges from $30K to $70K.

Ongoing Costs

Beyond the initial investment, Montauk Lobster House franchisees pay ongoing fees. The royalty fee is 5.0% of gross sales (percentage of gross revenue). The advertising or brand fund contribution is 1.0% of gross sales. There is also a technology fee of $300.

Net Worth & Liquid Capital Requirements

Montauk Lobster House requires working capital of $30K – $70K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.

What Can You Earn?

Montauk Lobster House does not disclose earnings data in Item 19 of its Franchise Disclosure Document. Not all franchisors choose to publish financial performance representations, though this is a data point many prospective franchisees consider important.

Next Steps

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