About Montauk Lobster House Franchise
Montauk Lobster House is an American seafood restaurant franchise focused on delivering upscale, locally sourced seafood dishes in a full service dining setting.
The brand has been franchising since 2023, bringing a premium seafood experience to communities that appreciate quality ingredients and a refined yet approachable restaurant atmosphere.
The franchise fee is $30,000.
Montauk Lobster House Franchise Cost & Fees
Minimum Investment
$148K
Average Investment
$272K
Maximum Investment
$395K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Revenue of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of Gross Revenue (1% National, 1% Local) | National brand fund |
| Total Investment Range | $148,250 – $395,000 | Includes build-out, inventory, working capital |
The investment range of $148K–$395K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Revenue) and marketing fee (2% of Gross Revenue (1% National, 1% Local)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $30,000 | $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 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | The greater of 25% of the then current initial franchise fee or 5% of the sale price |
| Renewal Fee | 20% of the then current initial franchise fee |
| Technology Fee | $200 - $300 per month (approximately) plus transaction costs |
| Audit Fee | Cost of inspection plus the amount of the underpayment plus interest |
| Grand Opening Advertising | $3,000 - $6,000 |
| Interest | Lesser of 1.5% per month or the highest commercial contract interest rate allowed by law |
| National Franchise Convention Fee | $500 |
| Maintenance and Refurbishing of Business | You must reimburse our expenses |
| Insufficient Funds | $75 |
| Relocation Assistance | Our actual cost |
| Product and Service Purchases | Actual amount incurred |
| Testing of Products or Approval of new Suppliers | Not to exceed $1,000 |
| Customer Service Fee | Actual amount of our cost or reimbursement |
| E-mail Maintenance Fee | Up to $50/month (currently none) |
| Insurance | You must reimburse our costs |
| De-Identification Reimbursement Fee | Actual costs incurred |
| Management Fee | $250 per person per day (plus other costs and expenses) |
| Indemnification | Will vary |
| Cost of Enforcement | All costs, including reasonable attorneys’ fees |
| Retraining Fee | Our then current standard rates or $250 per trainee per day, whichever is greater |
| Additional Training or Assistance | $250 per day per person plus expenses |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 82 hours |
| Classroom Training | 14 hours |
| On-the-Job Training | 68 hours |
| Training Location | One of our Affiliate restaurants in New York or another franchisor training center we designate. |
| Additional Training | Ongoing training programs, seminars, or webinars may be required, at franchisee's expense ($250 per person per day plus expenses). |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | Lesser of a 3-mile radius around your outlet or a population of 30,000 people |
| Description | A specific geographic region defined and approved by radius, zip codes, natural, or political boundaries as set forth in the Franchise Agreement. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Successive terms of TEN (10) years each |
| Renewal Fee | 20% of the then current initial franchise fee |
| Renewal Conditions | Full compliance with agreement, capital expenditures for uniformity, satisfied monetary obligations, no default, timely written notice, sign current Franchise Agreement (may have different terms), comply with current qualifications and training, sign general release. |
| Transfer Fee | The greater of 25% of the then current initial franchise fee or 5% of the sale price |
| Transfer Conditions | Franchisor's prior written approval, all obligations paid, general release signed, transferee meets franchisor's standards, transferee signs current franchise agreement, transferee signs personal guaranty, transferee obtains necessary consents/approvals, transferee signs nondisclosure/non-competition agreement, transferee completes initial training. |
| Termination for Cause | Franchisor may terminate for various defaults, some curable (e.g., failure to comply with mandatory specifications (30 days), failure to maintain insurance (10 days), failure to make payments (5 days)) and some non-curable (e.g., failure to timely establish/equip/open, failure to complete training, material misrepresentation, felony conviction, unauthorized use of trade secrets, abandonment, unauthorized transfer, understatement of fees, insolvency, misuse of marks, repeated failures to submit reports/pay fees, health/safety violations, repeated breaches). |
| Non-Compete Period | During the term of the Franchise and for 2 years after termination or expiration. |
| Non-Compete Details | Prohibited from offering Competitive Business services within a 25-mile radius of any franchised outlet or franchisor-owned business, or soliciting customers/associates to compete. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Either the Franchisee or its on-site Designated Manager must devote sufficient efforts to the management of the day-to-day operations of the Franchised Business, but not less than forty (40) hours per week. |
| Required Suppliers | Franchisees must use advertising material from the franchisor or designated vendors, purchase computer hardware and software designated by the franchisor, and buy furniture, fixtures, equipment, inventory, and supplies from designated or approved vendors or according to franchisor specifications. Architectural and engineering services can be purchased from any qualified vendor. |
| Supply Restrictions | Franchisees must purchase certain items from designated/approved suppliers or according to franchisor specifications. The franchisor may revoke approval for any item, service, or supplier. |
| Franchisor Revenue from Suppliers | We may, but do not currently, derive revenue or other material consideration from required purchases or leases by you. Our affiliate does not earn revenue or other material consideration from required franchisee purchases or leases. In our last fiscal year ending December 31, 2022, we did not earn revenue or other material consideration from required purchases or leases by franchisees. Designated suppliers may make payments to us from franchisee purchases. In the fiscal year ended December 31, 2022, we did not yet receive any supplier rebates but may do so in the future. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or obligation. |
Montauk Lobster House Franchise Earnings — Item 19
Montauk Lobster House does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Montauk Lobster House does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Montauk Lobster House Litigation & Risk Flags
Clean Litigation RecordMontauk Lobster House has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Montauk Lobster House System Growth
Total Units
2
Franchised
0
Company-Owned
2
Montauk Lobster House currently operates 0 franchised locations and 2 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 1 | 0 | 2 |
| 2021 | 0 | 0 | 2 |
| 2022 | 0 | 0 | 2 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Total Assets
$1K
Audited by SMITH, BUZZI & ASSOCIATES, LLC. for year ending December 31.
Montauk Lobster House Franchise — FAQ
The total investment to open a Montauk Lobster House franchise ranges from $148,250 to $395,000, per their Franchise Disclosure Document. This includes the initial franchise fee of $30,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Montauk Lobster House charges a royalty fee of 5% of Gross Revenue of gross sales, plus a 2% of Gross Revenue (1% National, 1% Local) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Montauk Lobster House Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Montauk Lobster House to ensure you have the most up-to-date version.
Montauk Lobster House does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Montauk Lobster House has been franchising since 2023. The FDD shows an investment range of $148,250-$395,000, a 5% of Gross Revenue royalty, and no Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $30,000 and the total investment ranges from $148,250 to $395,000 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Montauk Lobster House and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Montauk Lobster House or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com