COUSINS MAINE LOBSTER

Item 7 lays out the steep entry: $266,600 to $965,800 total investment, including a $40,000 franchise fee, driven by buildout in high-traffic areas for lobster rolls and seafood. Ongoing fees hit hard—royalty is the greater of 6% of gross sales or $3,500 monthly, plus 2% brand fund and up to $400 monthly for regional co-op ads. Item 19 shines brightly with average gross revenues of $891,436 across the 4 units, but the median drops to $635,955, signaling that a few high-flyers skew the average while most hover lower—no profit figures disclosed, so EBITDA margins remain a black box, but these topline numbers suggest strong traffic potential in the quick-service seafood niche.

System health metrics raise red flags: from 5 locations in 2023 to 4 in 2024 (-20% contraction), one non-renewal, and a breach/abandonment litigation settled post-termination. Projected openings are modest at 2 new units, per Item 20, while 9 SBA loans averaging $352,133 carry an 11.1% default rate—higher than many peers, hinting at financing strains or operational hurdles since franchising began in 2017. For risk-tolerant investors eyeing outsized seafood plays, the revenue punch tempts, but tiny scale and shrinkage scream 'prove-it' territory—proceed only if you thrive on unproven waters.