Montauk Lobster House franchise
2023 filing · March 13, 2023
Montauk Lobster House at a glance
An American seafood restaurant, as a dine-in restaurant or a fast-casual format. At the end of 2022 there were 2 Montauk Lobster House locations in the US, all company-owned.
The business
- Franchisor
- Montauk Lobster House, Inc
- The company that sells the franchises
- Franchisor based in
- Montauk, New York
What you pay
- Cost to open
- $148K–$294K
- A dine-in restaurant
- Franchise fee
- $30,000
- Paid once, when you sign
- Royalty
- 5%
- 5% of gross revenue, paid monthly, plus 1% to the national advertising and development fund
- Brand fund
- 1%
- 1% of gross revenue, paid monthly
- Renewal fee
- See terms
- 20% of the then current initial franchise fee
- Territory
- Protected
- Protected territory
- Franchisor financing
- None offered
Where it is
- US locations, 2022
- 2
- Franchised and company-owned
- Franchised
- 0
- Company-owned
- 2
- Change in 3 years
- 0
- Franchised locations, 2020–2022
From Montauk Lobster House, Inc’s 2023 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Montauk Lobster House among all franchises with the same figure.
| Figure | Montauk Lobster House | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $220,875 | Costs less than 67% of franchises |
| Franchise feePaid once, when you sign | $30,000 | Lower than 72% of franchises |
| RoyaltyShare of sales paid to the franchisor | 5% | Lower than 69% of brands with a set rate |
| US locationsFranchised and company-owned | 2 | Fewer than 82% of franchises |
How much a Montauk Lobster House franchise costs
Opening a dine-in restaurant costs an estimated $148,250 to $293,500. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are leasehold improvements ($30,000 to $100,000) and additional funds (3 months) ($30,000 to $45,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $30,000 | ||
| Traveling and Living Expenses while Training | $500 | $2,500 | |
| Architectural/Engineering | $3,000 | $6,000 | |
| Furniture, Fixtures, and Equipment | $20,000 | $40,000 | |
| Real Property Rent and Security Deposits | $9,000 | $21,000 | |
| Leasehold Improvements | $30,000 | $100,000 | |
| Computer and POS System | $1,500 | $3,500 | |
| Initial Inventory and Supplies | $10,000 | $20,000 | |
| Signage | $3,000 | $5,000 | |
| Grand Opening Advertising | $3,000 | $6,000 | |
| Licenses, Permits, and Certifications | $2,500 | $5,000 | |
| Insurance (3 Months) | $5,000 | $7,000 | |
| Professional Fees | $750 | $2,500 | |
| Additional Funds (3 months) | $30,000 | $45,000 | |
| Total | $148,250 | $293,500 | |
Source: Montauk Lobster House, Inc, 2023 filing, page 16
Montauk Lobster House franchise fee
The franchise fee is $30,000. You pay it when you sign the franchise agreement.
Source: Montauk Lobster House, Inc, 2023 filing, page 11
Royalty and ongoing fees
| Royalty | 5% of gross revenue, paid monthly, plus 1% to the national advertising and development fund. |
|---|---|
| Brand or marketing fund | 1% of gross revenue, paid monthly. |
| POS and Software Fees | $200 - $300 per month (approximately) plus transaction costs |
| Renewal Fee | 20% of the then current initial franchise fee |
| Local Advertising | 1% of Gross Revenues |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Montauk Lobster House, Inc, 2023 filing, page 12
Other fees as filed, from pages 12–13. The filing lists every fee, including late fees and audit costs.
Sales and earnings
No figures Montauk Lobster House does not share sales or profit figures for its locations. Talking to current and former franchise owners is the usual way to learn what a location earns.
Source: Montauk Lobster House, Inc, 2023 filing, page 42
- Estimate Estimated yearly sales per location
- $540K–$940K
Estimated from the sales that 292 comparable franchises file, matched on industry, format, cost to open, fees and size.
How Montauk Lobster House compares
Of the 813 restaurant franchises on this site, Montauk Lobster House is the 47th cheapest to open and the 663rd largest by number of locations.
| Figure | Montauk Lobster House | Typical restaurant brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $148K | $408K | $222K |
| Cost to open, high end | $294K | $866K | $477K |
| Franchise fee | $30K | $35K | $40K |
| Royalty | 5% | 5% | 6% |
| Brand fund | 1% | 2% | 2% |
| US locations | 2 | 14 | 21 |
| Shares earnings figures | No | 474 of 813 | 2,147 of 3,352 |
Typical is the median across the 813 brands in restaurant franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2020 | 0 (0) | 2 | 0 | 0 |
| 2021 | 0 (0) | 2 | 0 | 0 |
| 2022 | 0 (0) | 2 | 0 | 0 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: franchise failure rates.
Source: Montauk Lobster House, Inc, 2023 filing, page 42
Who owns Montauk Lobster House?
Montauk Lobster House franchises are sold by Montauk Lobster House, Inc. Its filing names no parent company.
From Montauk Lobster House, Inc’s 2023 filing, page 9.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | None. The filing says no litigation has to be disclosed. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: Montauk Lobster House, Inc, 2023 filing, litigation on page 10, bankruptcy on page 10
Montauk Lobster House filings
The figures on this page come from Montauk Lobster House, Inc’s 2023 filing, issued March 13, 2023, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2023 filing | March 13, 2023 | NASAA depository | Costs, fees and locations, 2020–2022 |
Each link opens the filing as a PDF. See the newest filings across all brands.
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