How Much Does a Skrimp Shack Franchise Cost?
Data from the 2021 Franchise Disclosure Document
Investment Summary
Total Investment
$286K – $614K
Franchise Fee
$45K
Royalty
In the first year of operation, 7% of Gross Sales. In each year of operation after the first year, 6% of Gross Sales.
Ad Fund
1.0%
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for Skrimp Shack is $45K. 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 Skrimp Shack franchise requires a total investment of $286K – $614K. 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 $10K to $15K.
Ongoing Costs
Beyond the initial investment, Skrimp Shack franchisees pay ongoing fees. The royalty structure is: In the first year of operation, 7% of Gross Sales. In each year of operation after the first year, 6% of Gross Sales.. The advertising or brand fund contribution is 1.0% of gross sales. There is also a technology fee of $479.
Net Worth & Liquid Capital Requirements
Skrimp Shack requires working capital of $10K – $15K 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?
According to Skrimp Shack's Item 19 financial performance representation:
Median gross sales: $794K
This figure comes from Item 19 of the FDD. Gross sales are not the same as take-home profit. After deducting royalties, ad fund fees, rent, labor, and COGS, net income is typically a fraction of gross revenue.
How Do Banks View Skrimp Shack?
SBA Loans Issued
7
Default Rate
16.7%
The SBA (Small Business Administration) tracks loan performance for franchise brands. Skrimp Shack has 7 SBA-backed loans on record. The default rate is 16.7%, which is near the franchise industry average. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.
Next Steps
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