Captain D`s Free Information Franchise Report

Transcription

FRA N C H IS E I N FO R M AT I O N R E PO RT
CAPTAINDSF RAN C H I SI N G.C O M
1
C O NT EN T S
W hat i s Capta in D ’s?
3
Th e captai n d ’s Sto ry
5
W hy S e afoo d ?
7
W hat’ s S p ec ia l A bo ut O ur M e n u?
10
W hat Ar e m y Sta rt u p Cost s?
12
How Mu c h Ca n I M a ke ?
14
W ho i s Ou r Co m p e t it io n ?
16
W ho i s Ou r Co r e C usto m e r ?
17
Captai n D’ s F ra n c h ise R ev ie ws 19
W hy C u stom e r s Lov e U s
20
To u r the N e w Ca pta in D ’s
22
W hat Mak es a G r e at Lo cat io n ? 23
M ar k e ti n g Sup p o rt
25
Captai n D’ s O f f e r s In d ust ry- Lea din g Tra in in g a n d Suppo rt
27
W hat Ar e O ur F in a n c in g O pt io n s?
29
faq3 1
Meet th e M a n ag e m e n t T e a m 33
n ex t step s 35
2
What is
Captain D’s?
A proven dining leader with a track record
of innovation prepares to claim even more
market share with nationwide expansion
Captain D’s is one of the most popular, best-selling
seafood franchises in the country. There are numerous
reasons for this: exceptional, quality food that customers
crave, clean, well-appointed restaurants and a staff
committed to a superior customer experience.
Americans are moving away from burgers and fries and
heading toward a fast-casual dining experience that feels
like a restaurant, and is good for them. We are benefiting
from the increasing popularity of fish and seafood as a
dining choice. Healthy food, attractive surroundings — as
our CEO Phil Greifeld puts it, “We are where chicken was
20 years ago.”
According to the National Marine Fisheries Service,
seafood consumption has been flat or shown incremental
growth, even at a time when customers are seeking
healthier meals and doctors are encouraging patients to
eat more fish. “You might think this is because people
have rejected seafood, but that isn’t the case,” Phil said.
“Seafood is just not available in many markets. When we
open a new store, seafood consumption grows quickly.
There are not many options for diners to purchase seafood,
and this really works in franchisees’ favor.”
Captain D’s is looking to break out from its historical
base. We are looking for franchise owners who are familiar
with the dining industry, who want to run restaurants,
provide outstanding service and who want to get into a
less-competitive segment with solid growth potential. We’ll
meet you at the table with a lot to offer.
Authentic, high-value experience
Our seafood is carefully sourced; we use Alaska pollock
as the foundation fish in our batter dipped entrees. We can
tell you where and when our wild fish was caught, and it
arrives at restaurants in fillets. Captain D’s does not, nor will
it ever, serve fish nuggets, fish patties or fish sticks — the
leftover “blocked” fish that customers see in other seafood
chains – that’s simply not the D’s way.
Combine that with fresh vegetables and sides prepared
in-store, and it’s easy to see the Captain D’s difference.
Customers notice it too, and that’s why we broke AUV
records in 2012, 2013, 2014; we are on track to do so
again in 2015*.
Now add in a store overhaul that is a lot more than a
fresh coat of paint and a spruced-up entryway. Captain D’s
has done away with the “Ahoy, matey” look of a wharf with
netting and lures and has gone for a bright, welcoming feel.
From the color palette to the décor, it’s like visiting a friend’s
beach house for a nice, relaxing vacation.
3
And is it successful? Absolutely.
A large portion of our guests choose to dine in rather
than use our drive-through window, something rare in the
fast-casual industry. And because we offer “modified table
service,” as Jason Henderson, Vice President of Product
Innovation, likes to call it, one of our friendly staff brings
the food to our guests when it’s ready. Guests enjoy real
plateware, real silverware, and the chance to set up their
table with condiments and sauces. It’s a full, sit-down meal
experience at an affordable QSR price point — it’s why our
guests linger, and why they return.
Evolving menu piques consumer interest
Captain D’s has spent just as much time overhauling
its menu as it has its physical locations. Our grilled menu
is already at 10 percent of sales with very little (if any)
focused marketing efforts, and it’s rapidly increasing as a
percentage of daily sales. We listened to what customers
wanted, tested recipes and combinations to make sure
they were up to our standards, and then put them on the
menu.
Menu development is another major differentiator
for Captain D’s. We test thousands of dishes and
combinations in our test kitchens, taking ideas from
customers’ comment cards or website visits. We also hear
about interesting combinations and concepts from our
staff.
If something sounds good, we see if it looks and tastes
good. And if it passes those tests, we see if it’s feasible for
our restaurants — but we never put anything on the menu
that imperils a franchise owner’s profit margin.
“Captain D’s firmly believes that high-quality, topend seafood can be delivered in a way that guarantees
an owner’s ability to make money and grow his or her
enterprise.”
We’re in this together
Something else to know about Captain D’s is that unlike
most franchisors, we are right out there with our franchise
owners. We own half of the total restaurants in our chain,
and we continue to open new stores alongside our
franchise owners. We don’t ask our franchisees to make
investments we won’t make ourselves. We’re growing and
are doing it by both building our own stores and recruiting
franchisees who also want to share in our future growth.
Why? Because we know a good opportunity when
we see it, and we often want to capture a market so that
Captain D’s can become a well-known local brand. We
leverage these corporate stores in many ways.
For one, they can serve as test markets so when we roll
out a new idea to franchise owners they know the product
or concept has been fully vetted.
We also place corporate stores in markets between our
franchise locations so that the brand has a presence across
an entire region, as opposed to just one or two cities. This
allows us to leverage our marketing efforts in print and
television so that all locations benefit from a targeted ad
buy.
These are some of the many reasons that Captain D’s
wants to enter new cities and states. And again, we’re
looking for owners who want to run a restaurant — and
eventually several locations. Captain D’s has proven over
our almost 50 years of operation that quality and customer
service will always carry the day, and that innovation can
keep a brand not only fresh, but growing, even during
challenging economic times. We’re eager to speak with you
and believe you’ll like what you hear.
4
The
Captain D’s
Story
A strong, enduring Southern brand is ready
for national expansion
The first Captain D’s Seafood Restaurant opened
on Aug. 15, 1969, in Donelson, Tennessee. It was a big
hit with almost every demographic: parents with small
children, senior citizens, and budget-conscious singles, all
who found something to like on a menu that continued to
expand while remaining reasonably priced.
Within four years there were 15 locations, and what had
begun as Mr. D’s Seafood and Hamburgers had officially
become Captain D’s. The restaurant’s focus became the
fish and chips, shrimp, and side dishes that are our most
popular menu items today.
Growing through the decades
During the rest of the 1970s, Captain D’s continued
to evolve. Family-oriented programs such as the Kids’
Birthday Club were added, along with children’s comic
books. This cemented Captain D’s as a family-friendly place
for parents and grandparents, who brought children and
their friends for special occasions, as well as for regular
meals.
In the 1980s and 1990s, Captain D’s grew throughout
the Southeast. We implemented a new image and logo,
as well as new restaurant interior and exterior designs. In
2012 we debuted an entirely new image. Gone are the
“fisherman’s cabin” décor items, such as netting and fishing
lures. In their place we’ve rolled out a physical presence
that reflects a low-key, casual, colorful coastal lifestyle. Now
a trip to Captain D’s is like visiting your favorite beachside
resort and restaurant.
Evolution is behind ongoing success
“We have a very diverse customer base, and we always
have,” says Michael Arrowsmith, Chief Development Officer.
“We have our senior-citizen customer base, people who
have come in for the batter dipped fish and who love our
hush puppies. They raised their children with us and they
bring their grandchildren in now.”
Those grandchildren, Michael continues, “are looking
for healthier options, and they gravitate to our new grilled
5
menu. They want the protein in their diet that fish has to
offer and they want healthy sides. Ours are made fresh in
the restaurant every day. These guests know that, and it
matters to them.”
“We’ve always set the bar high for guest experience,”
continues Brad Reed, Vice President of Franchise
Operations. “We give them an experience they may not
have been expecting when they walk through the door.
We deliver on hospitality, and that’s why we are a valued
dining experience for everyone from retirees who come in
after church to white-collar business people looking for a
delicious, nutritious lunch that doesn’t feel like fast food.
Young families are a growing part of our guest base as well,
because we truly do have something for everyone in the
family on our menu.”
Continued growth, now all across the U.S.
There are now more than 500 Captain D’s restaurants
in the United States, and that number is growing. Why?
Because our great food, low prices, and outstanding
service set us apart. Customers know they are valued at
Captain D’s — our people make sure of it, and our food
backs them up. We’ve seen a lot of growth in our nearly 50
years of business and are poised for even greater things
going forward.
“We are a sleeping giant in the industry,” adds CEO
Philip Greifeld. “Captain D’s inspires tremendous loyalty
from its existing guest base and is drawing in new guests
from across the broadest possible demographics — from
young families to senior citizens. That is only going to
continue as more people see our expanded menu and
redesigned restaurants. This is an excellent time to explore
this opportunity.”
6
Why Seafood?
Health-conscious consumers gravitate
towards low-fat, low-carb meals, and
Captain D’s evolving menu meets that need
According to the U.S. government’s 2013 “Fisheries of
the United States” report, Americans were only eating 0.7
percent more seafood than they did the year before — 14.5
pounds in total. So why would anyone want to open a
seafood restaurant?
Because seafood is what health-conscious consumers
want, and they would be eating more of it if they had
available options. That’s where Captain D’s dominates the
fast-casual dining marketplace.
Consumers say they believe seafood to be much
healthier than burgers, pizza and even chicken. They’re
right. Low fat, high protein … it’s at the top of every diet
recommendation. USDA Dietary Guidelines recommend
that a weekly diet includes at least two servings of seafood.
According to Technomic Inc., a Chicago-based market
research firm, nearly three-quarters of people who are
eating more seafood say they are doing so to eat more
healthfully. And it’s no wonder that seafood, with benefits
such as reduced risks of heart disease, improved baby
brain wellness and increased memory for seniors, is
becoming an essential part of a healthy and balanced diet.
Even better news for seafood-restaurant operators
is that this trend crosses all age demographics. Younger
diners want inventive, satisfying entrees as part of a healthy
lifestyle. Older diners want the health benefits of seafood,
and they also enjoy longtime favorites such as Captain D’s
batter dipped Alaska pollock.
But here’s the big news: According to Technomic, only
6% of seafood entrees on menus in the United States
are found in fast-casual restaurants. That means Captain
D’s isn’t competing in a crowded marketplace. It is the
marketplace.
The chicken revolution, now with seafood
Twenty years ago fast food menus underwent a major
change shifting from burgers and fries to lighter, healthier
options – most notably chicken. Currently that kind of shift
is happening again, and this time the focus is on seafood.
Captain D’s is driving that effort.
“The biggest challenge is reminding people they want
to eat more seafood meals,” says CEO Phil Greifeld. “We
have done a lot of research on consumers’ dining habits
and the vast majority say they love seafood. When we ask
why they don’t eat it more often they say they don’t think
of it more often. Why? Because they don’t see the seafood
option when they are driving down the street. They see five
burger joints and six pizza chains, but no seafood. We are
setting out to change that, and that’s why we are moving
aggressively to expand in our current markets, as well as
into new parts of the country.”
7
remodeling we look and feel different too. Nobody else is
doing what we are doing, and you can’t say that for burger,
chicken, or Mexican chains. Our competitors may try
to offer fish, but they don’t do well when they do.
Nobody can really compete with us.”
Vertical and horizontal growth
Shrimp Skewer Meal
Grilled seafood opens new frontiers
There is an evolution underway in the fast-casual
dining space, and industry analysts say that fish is now
where chicken was 20 years ago. Every major player in
the restaurant industry has added at least one or two fish
offerings to the menu. At Captain D’s, we have a menu
that’s almost entirely fish, along with a few chicken and
beef options.
Captain D’s is the most authentic seafood provider in
fast-casual dining today — it’s where we’ve been for almost
50 years. While others are scrambling to add fish to their
menus, we’re expanding and enhancing our offerings.
Captain D’s has no close competitors for quality and value
at the price points we offer.
“We have higher food quality, we have higher hospitality
levels and we have more offerings than anyone else in the
QSR sandbox,” says CEO Phil Greifeld. “And since our
A Captain D’s franchise is a great opportunity for any
entrepreneur who wants a lot of room to grow. Success is
possible in two distinct ways:
Same-store volume. Our Average Unit Volume, or
AUV, has been increasing every year since 2012, with 2015
poised to break even more records.
Few direct competitors. If you already operate
restaurants in your area, Captain D’s won’t be cannibalizing
your other locations. There’s really nothing like Captain D’s
in the market, so it will draw people who are specifically
seeking seafood over burgers, chicken or pizza.
“We are clearly in growth mode,” Phil says. “We believe
quality begets more quality. As we get better and better as
a brand, and as we continue to heighten our level of menu
innovation — along with our remodeling — we are really
reintroducing ourselves to our guests. If they have been
in before they are amazed at the change. If they have not
been into one of our restaurants before, they enjoy having
real silverware and plateware. They enjoy a menu with
many options — and they see items that they want to try
on their next visit.”
8
Authentic brand, superior
product
Captain D’s will not be outdone when it
comes to quality seafood. We can tell you
where your fish is caught, thanks to our
use of sustainable fishing grounds near
Alaska. We also use the entire cut, or fillet,
of the fish for our products — no piecing
together scraps and then breading it to
hold the whole thing together. Our fish fillet
flakes when it’s cut, just like it’s supposed
to.
At Captain D’s, quality and service have always gone
hand-in-hand. It’s why our brand has done nothing but
grow during the nearly 50 years we’ve been in business,
and it’s why we are capturing a growing share of the fastcasual market today.
Southern Style White Fish
“In our focus group interviews, I have heard so many
people say, ‘Oh, I used to love Captain D’s as a child, but
then it just kind of fell away from my area of focus.’ We
have set out to make sure that is no longer the case,”
Phil says. “Former guests, and consumers in general,
remember Captain D’s, so now our goal is to make them
aware that we have made some big changes. We have
upgraded our products, we have added products, and we
have created a whole new experience for them to enjoy.”
9
What’s Special
About Our
Menu?
and Executive Chef. “If they like the idea and think the price
we’re talking about sounds good, then we begin testing.”
From grilled items to fresh vegetables
as sides, the Captain D’s menu reflects
American consumers’ desire for healthy
dining
Every burger shack, chicken joint and pizza parlor says
its menu is special. And if by “special” they mean “slightly
different from the competition,” then they’re telling the truth.
But at Captain D’s, when we say special, we mean it in
many different ways.
First and foremost, our quality and price are unparalleled
in the industry. Nobody offers the quality of fish and the
variety of preparations that we do. Outstanding seafood at
an affordable price is the cornerstone of what we do.
Extensive menu redevelopment pays off
In the fast-moving restaurant industry innovation is key
to success. That means more than just rolling out one or
two new menu items every year. It means a constant effort
to re-imagine, expand and improve our menu. Here again,
Captain D’s has no competition.
“We get ideas for new menu items from lots of places,
but we always take them straight to the guests,” says
Jason Henderson, Vice President of Product Innovation
That’s no small matter. Less than 10 percent of
suggestions make it from the idea stage to the actual
Captain D’s menu board. Can our vendors supply us with
what we need at the quality we demand? How does it look
and taste?
10
Does it work well with our other menu items? In 2013,
it went like this:
“I really enjoy the batter dipped fish,” Jason says.
“The Alaska pollock variety means that we are getting the
whole muscle, not pieces pressed together. None of our
competitors offers that. I’ve been on the trolley boats when
they catch those fish off the coast of Alaska, so I can vouch
for it. It’s why this product has been with Captain D’s since
1969.”
Jason also enjoys the new Parmesan-encrusted tilapia
on the grilled menu.
“It just shows so well what our guests love about us:
seafood expertise,” he says. “Not just the value, but the
variety. They like the way we can cook seafood, from
healthy to indulgent.”
Custom request? No problem for our
kitchens
That also means catering to special requests — never a
problem in a Captain D’s restaurant.
“We are set up so that we can take care of a customer’s
A prime example of this attention to every last detail is
the grilled menu. Since these entrees took their place on
the menu they have become almost 10 percent of total
sales — with very little spent on marketing.
“When we’re ready with a new food item, that means
that we’ve worked out how it’s prepared and who’s
involved in that, all the back-end processes,” Jason says.
“But then it’s time to ‘birth the baby’ and get it into the
restaurants! For that, we’ll go into three markets, about 30
restaurants, and do a full-court press. It might even be in
broadcast TV ads, a really high-profile launch.”
Longtime favorites never get stale
At the same time, the anchor menu items (the “fan
favorites”) are always guaranteed to be top-quality. That’s
especially true if the executive chef has a favorite.
need,” Jason says. “Our food is not sitting under a heat
lamp waiting for someone to buy it. We begin cooking
when the guest places his or her order. That way, we can
ensure not only a fresh plate of seafood, but also take
into account any special needs they have. Being able to
customize orders is another way that Captain D’s stands
out in the fast-casual market.”
But in the end, it’s about the fish, the cole slaw, the
hush puppies, and all the rest.
“The taste and quality of our food ranks at the top of the
list of why people are coming again,” Jason says. “We test
everything thoroughly, and then we test it again in two or
three markets. We take every single step very carefully and
analyze all the data we can gather. Fewer than 10 percent
of the ideas we either get from guests or come up with
ourselves make it from concept to menu. But the ones that
do are generally successful.”
11
What Are
my Startup
Costs?
Owning a Captain D’s seafood restaurant
franchise is much more affordable than you
think
Captain D’s is a well-established franchise with
tremendous growth potential. Our highly recognized
name in the fast-casual dining sector, combined with the
explosive growth of consumer interest in healthy dining
alternatives, means our franchise owners are poised for
even greater success in the coming years.
Captain D’s has some basic requirements of
franchisees. We are looking for both single and multi-unit
owners who have a history of business success. Captain
D’s comes to the table with attractive incentives in key
markets, and the franchise partner who will be approved
must be committed to restaurant operation and expanding
the brand.
A franchise owner/operator must have:
Collective Net Worth: $1,000,000
Liquid Assets: $350,000
The development costs for a single-unit, 82-seat
Captain D’s franchise location will be between $771,000
and $1,003,000..
Franchise fees are as follows:
Initial Fee: $25,000
Royalty: 4.5% of sales
Advertising Fee: 1.1% of sales
Local Store Marketing: 2% to 4% of sales (depending on
market/DMA)
Non-Traditional Unit Fee: $25,000
12
Captain D’s franchise startup costs
The chart below outlines the startup costs for a Captain D’s restaurant:
T Y P E O F EXP ENDI TU R E
Franchise Fee and Development Fee
RANGE OF
AM OUNT
$35,000
Real Estate
METHOD OF
W PAYMENT
W HEN DUE
Lump Sum
TO W HOM PAYMEN T
MADE
Us
As Agreed
As Agreed
Landowner
Building and Leasehold Improvements
$420,000 to
$500,000
As Agreed
As Agreed
Landowner and Suppliers
Training Expenses
$20,000 to
$40,000
As Agreed
As Agreed
Employees and Suppliers
Equipment
$222,000 to
$280,000
As Agreed
As Agreed
Suppliers
Computer Systems
$22,000 to
$26,000
As Agreed
As Agreed
Us
Inventory
$6,000 to $8,000
Lump Sum
Before
Opening
Suppliers
Miscellaneous Opening Expenses
$5,000 to $9,000
As Agreed
As Incurred
Suppliers
Insurance
$11,000 to
$25,000
As Agreed
As Incurred
Insurance Company
Additional Funds - 3 Months
$40,000 to
$90,000
As Agreed
As Incurred
Employees and Suppliers
Total
$781,000 to $1,013,000
Our Franchise Disclosure Document will explain in greater detail the costs and other aspects of the franchise
opportunity. Starting a Captain D’s restaurant franchise is a big decision, and we encourage you to study the numbers
carefully — and please contact us with any questions.
13
How much can i make?
Captain D’s revenues are climbing rapidly
every year
an attractive, appealing dining location, as well as one that
serves the healthiest food in the fast-casual dining sector.
Captain D’s is a great opportunity for an experienced
operator to get into the fast-casual space with a highperformance model that is both simple to operate and
doesn’t compete with pizza, hamburgers or chicken. Here’s
our recent earnings claims from our annual Franchise
Disclosure Document (FDD):
Captain D’s franchise locations around the United
States are enjoying strong and unprecedented revenue
growth. Every new store we’ve opened with our new store
design has averaged or exceeded $1.4 million in sales,
creating an exciting opportunity for food operators who
want a simple way to gain entry into what we believe is the
least competitive segment of the fast-casual space.
We set Average Unit Volume (AUV) records in 2012,
2013, 2014 and 2015 and are on track to do so again in
2016. Increasing sales volume is excellent for our owners.
This is a steep increase from our older stores, and today
many of our top performers are new owners of stores with
the new design.
Because Captain D’s has been proactive in menu
development and location development, we are benefiting
from the growing number of consumers who are looking for
TOTAL RESTAURANTS FOR FISCAL YEAR EN D ED
JANUARY 3, 2016
Number of Restaurants Operating One Year or More
500
Number of Franchised Restaurants
231
Number of Company-owned Restaurants
269
F RAN CH I S E D RESTAU RANTS FO R F I SCAL YEAR ENDED JANUARY 3, 2016
Top Third
Middle Third
Bottom Third
Total
Average Gross Sales
$1,483,767
$1,029,507
$729,016
$1,080,763
Number of Restaurants
77
77
77
231
Highest Gross Sales
$2,174,703
$1,205,772
$903,377
$2,174,703
Lowest Gross Sales
$1,210,358
$908,771
$405,697
$405,697
Number Above Average
32
35
45
102
Number Below Average
45
42
32
129
14
Newly Opened Captain D’s Stores Posting
Sales Gains
Our restaurants are seeing strong growth, which
breaks down as follows:
Top-third franchise restaurants = gross sales of
$1,386,419 in 2014
• Middle-third restaurants = gross sales of $938,420 in
2014
• Bottom-third restaurants = gross sales of $694,048
in 2014
•
Joining up with a ‘sleeping giant’
“By coming on board with Captain D’s now, you’ll be
joining a brand on a tremendous growth trajectory,” says
CEO Phil Greifeld.
“In 2012, our franchise system set an AUV record. In
2013 we broke that record. We broke it again in 2014,
and we’re on pace to do so again in 2015,” Phil says. “We
are sustaining our momentum. This is a brand that has
stood the test of time for nearly 50 years, but it is also in a
breakout period where we are garnering huge chunks of
market share from other quick-serve restaurants.”
“There are still many, many levers to pull — we are just
starting,” he continues. “Our remodel is a game-changer.
We’re just beginning to announce a new grilled menu that
doubles our offerings. This is an organization that is driven
by guest-centric values and is going places people can only
dream of. Our growth potential is endless.”
Community support and loyalty are pluses
Captain D’s also benefits from strong word-of-mouth in
the marketplace. A great example of this is all the activity
surrounding our grilled menu. These items have gone from
4% of sales to almost 10% of sales in the past year — with
little or no marketing. Once the full campaigns for the grilled
menu roll out, those numbers will only go up. We’re seeking
experienced franchisees who have the skills to execute
well.
Captain D’s provides this information, and much more,
to potential franchise owners because we want to present
all the numbers you will need to form a realistic revenue
projection. We also strongly encourage you to talk with
some of our franchise owners; they’re more than willing to
share their insights on revenues and ramp-up times. After
you get in touch with us by filling out the form below, we’ll
send you a list of franchise owners who will be happy to
answer your questions.
15
Who is Our
Competition?
The fast-casual dining market is crowded,
but Captain D’s occupies a unique niche
and faces no real competitors
Americans have more choices than ever for dining
out. There is an ever-expanding landscape of options,
particularly in limited-service restaurants, and these run
the gamut from classic fast food operations to a growing
number of fast-casual chains. The competition is strong,
and so are the opportunities.
Captain D’s is uniquely placed to stand out. Consumers
are turning away from burger-and-fries and mass-raised
chicken options as concern grows over processed foods,
high fructose corn syrup, high-calorie meals and the health
risks of sodium and sugars. Nationally known burger
chains, in particular, have seen their market shares steadily
shrink over the past several years — a trend that is forecast
to continue.
Adding new customers, not replacing
existing ones
Captain D’s has a core group of customers who have
kept us strong over the years. What’s exciting is how
our customizable menu dovetails with those consumers’
desires for healthier options in their diet. This means that
our stores are keeping their loyal customers while they also
add new ones all the time.
Customers can now pick from an array of grilled fish,
shrimp and fresh vegetables — options that sacrifice
nothing in taste but are much lower in carbohydrates,
calories and fat content. Seafood, in particular, is gaining
in popularity for just this reason, especially with all of the
information about the health benefits of Omega 3s. Captain
D’s already stands tall in this area and is uniquely suited to
benefit from these trends.
16
New look, value pricing are additional
drivers
Our stores are undergoing a significant updating,
bringing a current, hipper appeal to the aesthetics while
remaining warm and inviting for families. The redesigns
have helped to keep our restaurants modern and fresh,
and appeal to older patrons as well as young adults and
families.
Lastly, Captain D’s provides an affordable dining
experience, one that can deliver a great product without
requiring too much buck for that bang. Other fast-casual
restaurants cannot compete with the prices and value of
our restaurants.
You’ll be joining a brand on a tremendous growth
trajectory. Look at AUVs over last few years. In 2012 our
franchise system set an AUV record. In 2013 and 2014 we
broke the record, and in 2015 we are on pace to break that
record again.
“Seafood is a new and growing market,” says CEO
Phil Greifeld. “It’s not a limited occasion meal; it’s an
underserved industry sector. People don’t know where
they can get quality seafood at a reasonable price — we’re
here to tell them. Captain D’s fills a vital need. If someone
wants a high-quality seafood meal priced so that they can
routinely eat out — versus just making it a special occasion
— they can come to Captain D’s. That’s the message we
convey, and we are seeing it take root.”
Who is
Our Core
Customer?
Unlike restaurants that target a specific
demographic, Captain D’s draws from a
wide spectrum of the community
Guest loyalty is the foundation of any food-related
enterprise, and our guests’ loyalty has made Captain
D’s the sustainable and successful franchise investment
it is today. Our exciting challenge is determining how to
continue to attract more customers to our stores and
our products — particularly younger customers — while
retaining our current appeal.
Rural and urban markets both thrive
Captain D’s has long been a favorite of small-town,
rural locales, particularly in the South. The batter dipped
fish menu options are a staple in these communities,
where the local fish fry and church social are still valued
customs. Captain D’s has matched this constituency’s love
of tradition with the consistent and dependable quality of
the menu. Just as successfully, Captain D’s has always
accented hospitality with the welcoming atmosphere that
fits so well with the values of these communities. Small
towns in the United States are still vibrant opportunities for
17
investment; they are part of the national fabric and Captain
D’s is ensconced as a hallmark of this tradition.
The rise of the suburbs in the 1960s and 1970s was
a game-changer for many in the fast-food industry, and
Captain D’s has also succeeded there. The suburbs are
planned around the younger family experience, and Captain
D’s has a firm following.
Traditional, new menu items succeed
Now, more than ever, these families want healthier
options while dining out, and Captain D’s is uniquely
suited to benefit from this growing trend. In areas with a
wide array of choices and competition, we aggressively
push to expand our consumer base with new marketing,
store refurbishment and an ever-expanding menu. We
want to build on our clientele while also ensuring that our
customers become repeat customers.
Urban redevelopment projects are a more recent
movement. These areas are characterized by a push for
the modern with an accent on health and environmental
sustainability. Our most popular fish is wild-caught Alaska
pollock, the world’s most sustainable fish species. Captain
D’s has maintained a conscientious hand in overseeing the
fisheries and the quality of the fish that we serve — we do
not sell generic, square-cut blocks of “fish matter.” We sell
healthy, fresh fillets of whole fish and our customers note
and appreciate the difference.
— young professionals. As we do so, we maintain our
hallmark standards and taste with an ever-greater emphasis
on healthier menu items and methods of preparation. Our
core customers are a diverse and eclectic bunch, marked
primarily by their loyal appreciation.
“Everything we do is focused on making our guest
experience better, and that starts with the quality of our
food,” says CEO Phil Greifeld. “We have award-winning
advertising campaigns that remind people about what they
love about seafood, what they love about our brand. We
have people who won’t go anywhere else for batter dipped
fish. We have guests who love our batter dipped fish but
want to eat healthier — and they are coming to try our
grilled menu. We have seniors who love a full-meal deal for
$4.99. We have something compelling for every age range
and every taste range.”
Multigenerational appeal creates longevity
Grandparents have loved Captain D’s and now parents
and children also love Captain D’s. Now is an exciting time
to reach out to new and younger groups of consumers
18
Captain D’s
Franchise
Reviews
Read what franchisees say about Captain
D’s
When Captain D’s franchise owners talk about the
brand, their enthusiasm shows. The folks at corporate
feel the same way. That’s not surprising, given our 15
consecutive quarters of same-store sales increases.
Captain D’s has come a long way, and if you haven’t visited
one of our new stores, you’ll be surprised at how much our
brand has evolved.
Our brand is a terrific investment opportunity, and the
growth of our corporate-owned stores shows existing
and potential franchisees how devoted we are to the
brand’s success — to their success. In short, this is a
restaurant concept that first-time operators and multi-unit
professionals can latch onto, and grow — quickly and
easily — with guaranteed support for everything from
marketing to purchasing.
But let’s hear from the franchise owners
themselves:
“I’ve been in the restaurant business for over 46 years,
and I started at an hourly, entry-level position in 1968. I
worked my way up to become a Wendy’s franchisee for 25
years and sold my interests in them in 2003. Since then,
I’ve been concentrating on Captain D’s. 2011 was a big
year, 2012 was really big, 2013 was even bigger, 2014 was
huge. I was anticipating 2015 for our ability to keep growing
at that pace, and sure enough our sales are even stronger
this year!
When you experience growth like that and are a
restaurant owner, you credit it to your management
of operations. In reality, a lot of the credit goes to the
corporate management team and our CEO in particular.
They’ve done a great job building up Captain D’s, and I
make sure they know I appreciate it. The CEO sets the
atmosphere and demonstrates that people come first. He
is always giving people credit for the successes Captain D’s
is having.”
-Bill Townsend, Murfreesboro, Tennessee
“We’re involved in ownership and management of more
than 200 franchise locations and acquired five Captain D’s
last year. Because of our other brands, we could not grow
in our markets without competing with ourselves — we
were excited to be part of a brand that was not serving
burgers, chicken, or pizza. Seafood made sense to us, and
Captain D’s was the clear leader in this segment.
They had a management team focused on and
committed to a strong, strategic approach to growth. Most
importantly, they were performing well. 91% of people eat
seafood, and we felt that the right seafood menu could
drive a concept. When I met the management team, I
realized the passion they had for food, food preparation,
and quality — and how they wanted to protect the
customer relationship. This wasn’t a situation where the
owners were wanting to fix things, resell, and get out of
dodge. When I ate the food, I was amazed.
Sitting down and talking to the CEO and understanding
his long-term plan, he felt they were in charge of their
own destiny. Fast casual is up and coming. As long as
we had the menu, pricing, and strategy right, Capt D’s is
the perfect marriage. The management team is focused
on customers, on the product, on the employees, and
protecting the brand — and those are the same values we
believe in. It was an easy decision for me.”
-Tony Lutfi, Kansas City, Kansas
“We looked at several franchise brands — from Jimmy
John’s to Steak ’n Shake to Newk’s Eatery. Captain D’s,
with their new management team, has really improved the
brand. My wife doesn’t eat fried food, so the grilled menu
really appealed to us. Having the grilled menu on top of the
classic menu gives everyone an option, and anyone can
find something they like. We like that they are constantly
trying different food and menu items and that they test
them in company stores before they roll them out to us.
We only get the items that work well. They make sure there
are good options for franchisees and that we make a good
margin. They you add in the training they provide — they
really show you how to be successful. If you meet with
the management team, you’ll see how excited they are
about what they are doing. You can really see progress and
changes they’ve made.”
-David Yates, Tallahassee, Florida
19
“The upward trend continues, and that is due to the
leadership team. Philip desires a partnership with the
franchise community. He and his team have the right mix
of understanding to help a franchisee develop their small
business, while at the same time building strong corporately
owned restaurants. They are not afraid to take risks, nor are
they unwilling to listen. That combination allows them the
flexibility to be creative on the corporate side, prove the idea
— whether it is product innovation, design, or equipment —
then provide a proven path for the franchisee. Much like our
team in this market, our leaders are driven to succeed. That
determination prevents complacency. The bar just keeps
getting higher.”
“[Captain D’s] is checking for me on regular basis to
make sure that the companies cutting our fish are doing
it in the right manner. I don’t have have to film television
ads. All I have to do is send a few cents from every dollar
I take in, and our corporate office makes all the marketing
happen. That makes my life very easy. It is unbelievable
how much easier this business is to run compared to what I
was doing before.”
– Jim McClure
– Lisa Starnes, Texas
Why
Customers
Love Us
Great food, reasonable prices, beautiful
restaurants — what’s not to love?
First-time customers are easy to spot at Captain D’s.
They’re the ones who are pleasantly surprised when a staff
member stops by their table to make sure everything tastes
good, or to see if they need anything else.
Longtime guests know that customer service is a
door-to-door proposition at any Captain D’s restaurant.
That, coupled with great food at an outstanding price, is a
winning combination. It’s also why, after 46 years, Captain
D’s is expanding around the country even as other major
fast-casual brands are closing locations.
Not only are we growing, we are building companyowned stores at a time when most chains are selling off
their company-owned stores because they under-perform.
We believe an investment in a Captain D’s is a smart move
and we’re making our own investments at the same time
we ask franchisees to make them.
20
Focus on the fundamentals
Captain D’s has flourished by keeping a laser focus
on the basics: great food, affordable prices, a welcoming
atmosphere, and friendly, first-class service. We want
every guest to feel welcome and have a great experience,
and maintaining this standard has allowed our brand and
franchises to grow over the years, adding more customers
to our core clientele all the time.
Part of this consistency has, ironically, involved change.
Our stores and franchises have undergone a great
renovation in the last few years — the buildings are getting
renovated, brighter colors are going in, and the decor
is getting a modern touch. This has helped Captain D’s
stay current while still embracing tradition and steadfast
excellence. Our innovation has also applied to the menu:
more choices, grilled items — we’re adding a healthconscious spin befitting more health-conscious times.
Atmosphere draws in diners
Captain D’s has worked hard to create the most friendly
atmosphere possible. Half of our patrons dine in-house,
a real rarity in the fast-food world. In the past few years,
we have gone to using real flatware and silverware and
are offering modified table service. In this sense, Captain
D’s stands alone among the fast-food competition by also
having elements of the fast-casual experience.
We have always prided ourselves on sparkling customer
service, and this has paid off handsomely. Too often the
cliché about the lack of customer service in the casual
dining/QSR field proves true: customers are ignored
and not treated with common courtesy. We have always
avoided falling into this trend: Our guests are our lifeline,
and they appreciate being appreciated. Our efforts have not
gone unnoticed.
“My husband and I normally come here to order takeout, and each time we have been here the service is always
fantastic. The employees are always nice and polite and
always give great customer service. The food is always
cooked to our liking and tastes delicious. I will definitely
continue to come here! :)”
— Kaleena ‘Kala’ H., Nashville, Tennessee (Jan. 27,
2015)
“I love this location because the people who work here
actually look out for you when ordering new things; they are
knowledgeable, friendly, unassuming, and polite. I’m tired
of fast-food places just being ridiculous to their customers,
and this is a perfect example of raising the bar.”
— Charles H., Franklin, Tennessee (Dec. 28, 2013)
21
Tour the New
Captain D’s
A floor-to-ceiling reimagining of the Captain
D’s space is a hit with franchise owners
and consumers alike
When Captain D’s opened its first restaurant, there was
little doubt as to what the menu was all about. The “fishing
pier” motif was everywhere, from netting and lures to pier
pilings and other “ahoy, matey” décor. It was new, it was
different, and guests liked it.
Everything changes, however, and these days people
heading to the beach are looking more for a resort
experience than a day on the docks. Captain D’s listened
to their comments and launched a redesign that has
completely reimagined our look and feel from the ground
up.
A cool, casual beach house
“People had gotten tired of the ‘old man of the sea’
look,’” says Michael Arrowsmith, Chief Development Officer.
“We’ve given our customers more of a beachside or resorttype environment. Coming into a Captain D’s now is more
like walking into the vacation house you’d want to rent at
the beach.”
The new look is bright and airy, with light colors and a
more open feel. It’s coupled with extensive menu changes,
including an entirely new grilled menu, so that the overhaul
is a complete experience for the guest. First they see, and
then they taste, the difference.
their staffs, and we respond. We don’t do things in half
measures, and that’s why when we roll out something,
whether it’s a remodeled restaurant or a new menu item, it
succeeds.”
Longer in-store experience, more repeat
customers
“Almost half of our business are walk-in guests versus
drive-through service,” Michael says. “That’s unheard of in
this industry. People really enjoy the surroundings now in
a Captain D’s. They also like that their food is brought to
them at their table, and that it is on real plates and served
with real silverware. They like that they can get and arrange
their condiments as they see fit.”
Add to that a friendly staff focused on customer
satisfaction, and it’s easy to see why the remodel has made
good thing even better.
“People enjoy coming here,” Michael says. “The new
look and feel reflects what Captain D’s is today. We listen
to our customers, we listen to our franchise owners and
22
What Makes
a Great
Location?
Captain D’s flourishes in urban and rural
settings, and easily stands apart even in a
crowded fast-casual environment
Captain D’s is that rarest of restaurant concepts, one
that fits in a wide variety of markets. While some operations
are limited to a rural audience, or to an urban or suburban
sector, our restaurants do well in any size municipality.
We have what people want. Consumers are choosing
healthier options when they dine out. That means more fish
and fewer burgers. It means baked and grilled, not fried.
It means that Captain D’s is poised for success, no matter
where our restaurants are.
23
Our new freestanding store design is simple to develop.
It can be built from the ground up or as a retrofit of an
existing restaurant building. Since our basic design is
a box, franchisees have successfully converted closed
locations from other brands into Captain D’s as well as
modified several other existing buildings to fit.
Inviting surroundings enhance sales
In addition to our grilled menu, which has generated
more than 10 percent of sales with little or no national and
regional marketing, Captain D’s offers newly designed
restaurants that greatly enhance the fast-casual experience.
From the moment guests walk in, they know they are
in for much more than a “fast food” experience. With our
restaurant redesign, the old “fishing nets and lures” theme
is gone. What’s taken its place is a warm, inviting beach
house. Think of the great restaurants all along the U.S.
coastline, and now imagine that vibe brought inland. That’s
what the new Captain D’s looks like, and it’s why half our
guests choose to dine inside rather than just visiting the
drive-through.
It’s the little things
Another reason Captain D’s succeeds no matter where
we go? Our little differentiators — like using real plates
and real silverware. Guests routinely say that one of their
favorite things about coming to Captain D’s is that they
feel as though they are having a dining experience, not just
grabbing some food.
But it’s more than just the place settings. When a guest
places his or her order, they are able to visit our condiments
area and choose what they want, then proceed to a table.
When their food is ready, we bring it out to them. And
throughout the experience, friendly staff members stop by
the table to see if everything’s all right, and if anything else
is needed.
“Does it all taste good?” is something heard often at
Captain D’s, and if the answer is anything but “yes,” the
problem is addressed right away.
High-touch model is portable
All this adds up to a customer experience that’s
unmatched in the fast-casual sector. It’s why Captain D’s
has succeeded for 50 years in existing markets, and why
it’s doing well in new parts of the country. Our model, from
the best fish and sides available down to the vinegar for our
battered fish, has been carefully thought out. It’s why our
restaurants have so many regulars, from after-church senior
citizens to young families who want a nice, healthy meal at
an affordable price.
All this results in a restaurant model that is highly
portable. Captain D’s franchise owners report strong sales,
whether they are in an urban setting, a suburban area, or a
small town. First-time visitors come back, and the regulars
wouldn’t think of getting seafood anywhere else.
Our Chief Development Officer Michael Arrowsmith
adds: “We can fit in a lot of areas. We can go into highincome areas; we can go into small towns. We put a lot
of science into determining where to place our locations,
so we can find success even in small, rural areas. We are
seeing strong sales in newer stores in urban areas, but our
older stores in smaller demographics continue to perform
24
very well. A lot of companies have either a great brand or
great real estate. We have both.”
Marketing
Support
From menu development to local and
regional advertising, Captain D’s stands
behind franchise operations in every way
When a Captain D’s restaurant opens, it doesn’t come
as a surprise to very many people nearby. That’s because
the corporate marketing team has been partnering with
the franchise owner for several months, doing everything
from providing graphic design resources for ads to grandopening banners and event planners and other support.
What’s more, Captain D’s research teams also have
been working with new franchisees, making sure owners
and management team know about the incredible amount
of research that goes into every item on the menu, and all
the other talking points that help sell a great story to local
media.
Fast-casual dining is a crowded field. Captain D’s
stands out for a reason.
Brand development is ongoing
Captain D’s corporate owns half of the chain’s total
stores. What does this mean for franchise owners? It
means they have a partner who has a strong and ongoing
interest in the bottom line. Where other franchises see
only an interest in their owners’ top-line sales, which drive
royalty payments, Captain D’s wants to see success all the
way through the financials. That means a steady stream of
innovative marketing — and ours wins awards.
“How we are doing it? By starting with the guest,”says
CEO Phil Greifeld. “Everything we do is focused on making
the guest experience better. From the quality of the food to
new items, we showcase everything in an award-winning
TV ad campaign that has been running for three years.
It reminds people about what they love about our brand
and about seafood in general. It’s a broadly appealing
campaign, and it benefits all our locations.”
The numbers bear Phil out. Research shows that a
guest may come in for batter dipped fish, see our new
grilled menu, and return within days to try a new item. Our
25
highly publicized, reimagined kid’s meal has seen growth
of 60 percent since launch. A lower price point for full-meal
deals has not only brought in more business, it’s helped
raise the average check total every year for four years.
“We have been able to add higher-priced items, such as
the grilled menu, because we provide compelling offerings
that our guests are willing to pay more for,” Phil says. “And
because we have tested all these items at corporate stores,
when they are marketed nationwide and brought out to
the franchise locations, those owners know that they have
been thoroughly vetted, and that our guests want them.”
Grand openings set the stage for
partnership
Nowhere is the team effort behind marketing and
promotion more obvious than in the strategies that
surround a Captain D’s grand opening.
“We make sure we get noticed through local TV
stations, radio, and print media, and we also do several
forms of advertising,” Phil says. “We use billboards and
direct mail, all to gear up for grand-opening festivities.
We’ve upgraded our food photography, highlighting
the variety we offer, so the pieces we advertise with are
extremely attractive.
The corporate marketing team also works with local
franchise owners to find out about community partnerships,
and then works to maximize those. In the Fall of 2015,
we raised over $134,000 for Share Our Strength – No Kid
Hungry, an initiative that raises money to feed children in
America.
26
“We have a very data-based, guest-centered
approach,” Phil says. “We put all of our marketing efforts
through tests. We put ads in front of consumer groups and
look at everything we want that campaign to deliver. By the
time a poster or television ad goes out in a new market,
we know that it is entertaining, attention-grabbing, and
communicating our food’s quality and value.”
The proof, once again, is in the numbers: we’re in
our fifth year of same-store sales growth, and our AUV
continues to climb year over year. Captain D’s occupies
a unique niche in the fast-casual experience, and our
marketing continues to highlight the difference, and value,
we offer our guests.
Captain
D’s Offers
IndustryLeading
Training and
Support
From local and national marketing to instore training up to and beyond opening,
franchises are never without backup
When a Captain D’s franchise opens, it’s the last in a
series of steps that have prepared the franchise owner,
his or her staff, and the community for a new dining
experience. Marketing to the community has made
residents aware of Captain D’s. Corporate trainers have
been on hand to work with the management and staff,
and everyone from kitchen staff to the front-line customer
service representatives are ready to go.
The training doesn’t stop when the grand-opening signs
come down, either. Captain D’s prides itself on constant
interaction with franchise locations. From information on
recipes that are being tested in corporate kitchens to
upgraded systems and software for inventory control,
training and support is a permanent two-way street.
Initial training covers the bases
A major factor behind Captain D’s “ready on opening
day” successes is the depth and breadth of the training
opportunities made available to every employee, at every
level.
“We have nationally certified training restaurants,”
explains Nancy Ward, Assistant Vice President of Training.
27
“These are company and franchise restaurants that have
gone through a difficult and arduous process so they are
able to train our future leaders. When someone signs on,
we put them into a training program that is tailored to the
capacity in which they’ll be working.”
For general managers, that means a six-week,
intensive, hands-on program at a training restaurant. A
multi-unit supervisor goes through a four-week version of
that program, as do support managers.
“They learn all nine designated positions,” Nancy
says. “They learn the tools and processes that go into
successfully running restaurants. They learn how to place
food orders, forecast needs, quarterback and coach, do
marketing, purchase … all the ins and outs of running a
business on a month-to-month basis.”
At training’s end, the management team visits the
Captain D’s Restaurant Support Center, where they meet
with the corporate personnel who will support them.
“We want them to be exposed to actual operations first
and understand what the result looks like, and then they
will have good questions about how all this works in their
location,” Nancy explains. “It’s an opportunity for everyone
to meet and share best practices, and give them a really
good sendoff.”
Hands-on training preps employees
The restaurant opening is supported by a training
team that is led by a training manager and seven certified
trainers. These are salaried, corporate employees who
work in corporate restaurants and know what needs to be
done when opening a new restaurant.
“We come in a week before opening day and help train
all the hourly members,” Nancy says. “We take anywhere
from five to 60 people who have never operated a Captain
D’s and have them setting sales records a week later. It’s
quite something to see from beginning to end.”
The full training team stays onboard at the new
restaurant for its first full week, so that there are plenty of
seasoned backups for the new staff. But every day, the
trainers step back a bit, letting the employees become
more comfortable with their duties.
“We want to make sure they have the capacity to adjust
schedules, make food orders … everything they have to
do,” Nancy says. “By the second week, we drop back to
three support people and are working more as coaches.
We celebrate successes, grow competencies, and work
on any problems. At the end of that second week, we’re
usually able to pull the last of the trainers out.”
Ongoing support ensures continued
success
Gone, but not forgotten. Support from corporate is only
a phone call or email away, and the training staff makes
several scheduled and unscheduled visits as a matter of
course during those first few months.
“You are a part of the system, and we support you
continuously,” Nancy says. “My department believes
that our franchise owners and their managers are our
customers. We come in after four weeks, then eight weeks
and then six months. We are there when the Director of
Franchise Operations does a full operation-standards
audit. And any time something new is instituted, we have
workshops and seminars to help everyone learn the new
systems and get the right support. We have an intranet,
so that everyone is in constant communication. We are an
evolving, innovative brand, and so that kind of support is
necessary all the time.”
This results in well-run restaurants with minimal staff
turnover, and it also means that guests have a terrific dining
experience from day one. That’s rare in the restaurant
industry, especially the fast-casual sector.
“Nobody can do what we do,” Nancy says. “It’s so
much more difficult to regain a guest than it is to meet
and exceed their expectations right away. We have bright,
brand-new restaurants with a fresh, new menu. People
who have never been in before are amazed, and people
who knew the old Captain D’s remember the hospitality
and are pleased to see that we’re as friendly and serviceoriented as ever. And that all comes from the initial, and
ongoing training, that we provide.”
28
What Are Our
Financing
Options?
There are many ways to fund a Captain D’s
franchise, and each should be explored to
find the best fit for your situation
As you begin to explore your options, here are some of
the most popular financing avenues to consider:
1. Community banks
Loan programs for small businesses are an important
service for community banks, which are generally defined
as those with less than $10 billion in assets. According to
the Independent Community Bankers of America, these
lenders make one in five small-business loans. More than
half of small-business loans under $100,000 come from
community banks, and nearly half of small businesses are
financed by smaller banks.
Advantages: Community banks generally offer a range
of services for franchisees including: loans for acquisitions,
remodels and relocations; financing for equipment, furniture
and fixtures; a working capital line of credit; leasehold
improvements, and eligible building and sitework costs;
refinancing for existing debt; and competitive loan rates
with flexible structures.
Things you should know: Prior to any loan, most
community banks require the following items to begin the
application process:
• Business tax returns (if any) for the last three years
•
•
•
•
•
•
•
•
Interim financial statement (if any) dated within the last 60
days
One-year cash flow projection
Business plan
If borrower has ownership in affiliate businesses: copies
of the last three years tax returns and financial
statements
Personal financial statement and the last three years
tax returns from all individuals with 20% or more
business ownership
Estimated cost breakdown of leasehold improvements
and equipment
Copy of lease agreement
Completed loan application documents
2. Leverage retirement funds tax-free and
penalty-free
If you have a 401(k) or an individual retirement account
(IRA), it can be converted into a self-directed IRA to fund
your business. This financing option became extremely
popular during the recession, when depressed real estate
prices eliminated home equity loans as an option for many
franchise buyers.
Advantages: Once you set up a self-directed IRA,
you can tap into your retirement funds without paying
penalties. Since it’s your money, not the bank’s, you don’t
have to worry about a long loan-approval process. As
your business succeeds, you make payments back into
your retirement account without having to pay interest to
a bank. This option also allows you to keep cash in your
bank accounts to be available for starting and growing your
business.
Things you should know: Your business becomes your
retirement plan, which brings risks and rewards. You should
be confident that you can beat the stock market by building
the value of your business, as well as by avoiding interest
payments on a loan.
3. SBA loans
U.S. Small Business Association (SBA) lending has
made a strong comeback as the economy has improved,
and it is much easier to obtain an SBA loan than it was a
few years ago. These are government-backed loans at lowmarket rates, which eliminates most of the risk for banks.
Advantages: You can finance a percentage of the cost
of your business, which allows you to conserve cash; the
interest rates tend to be fairly low; there is no prepayment
penalty; and you can obtain better loan terms once you
have a proven track record.
29
5. Partnerships
Captain D’s is in the SBA registry. Loan applications
for franchises on the Franchise Registry can be reviewed
and processed faster and more efficiently by the SBA and
its lenders because the respective franchise agreements
do not need to be reviewed in each individual franchisee
situation.
Partnerships can allow two or more people to combine
their resources to purchase a Captain D’s franchise. If
partners complement one another’s skill sets and add value
to the business, it can be a great arrangement.
Advantages: You can split management and leadership
duties, which gives you greater capacity and flexibility.
Since you have multiple people to oversee operations and
marketing, you may be able to grow faster.
Things you should know: Partners must have clear
guidelines for who handles what and how profits are
divided. In addition, to get the most out of your partnership
and avoid disputes, clear communication and a shared
commitment to the business are essential.
4. Friends and family
You may have friends or relatives who are willing to
invest in your success.
Advantages: They know you, they are typically flexible
on repayment terms and they may have expertise that they
can offer your business. They may not require collateral.
Things you should know: If the business doesn’t meet
expectations, it may strain your relationships. Family
and friends may also seek equity in exchange for your
investment, which would create a partnership arrangement.
30
FAQ
Got questions? We’ve got answers
Opening a Captain D’s is a big decision, and frankly
we’d be surprised if you’ve gotten to this point in your
research without jotting down a few questions. Here are
some that we routinely are asked. We’re here and ready to
talk if there’s even more you want to know.
How much is the advertising fee?
We charge an advertising fee of 1.1% of gross sales.
This fee covers the compelling advertising campaigns,
promotions, and public relations programs developed and
delivered by our marketing team to drive sales at your
store and throughout the Captain D’s system. We ask all
franchisees to spend between 2% and 4% of gross sales
(depending on whether your market has an advertising coop) toward local store marketing.
What are the minimum financial
requirements for new franchisees?
An individual, a company, or a group of partners
applying to open a new Captain D’s franchise must have
$350,000 in liquid assets available for investment and a
collective minimum net worth of $1,000,000.
What is the total estimated initial
investment?
The expected initial investment for a 82-seat
restaurant is $771,000 to $1,003,000. This amount
excludes the cost of real estate, but does include site
preparation and development.
Where is Captain D’s seeking new
franchisees?
Captain D’s is seeking to expand our national footprint
in select markets throughout the country. View our Market
Availability map.
How long is the term of a franchise
agreement?
Our franchise agreements typically establish a 20-year
initial franchise term.
How much is the franchise fee?
The initial franchise fee for each Captain D’s restaurant
is $25,000.
How much is the royalty fee?
We charge a 4.5% royalty on sales from your Captain
D’s restaurant. Qualifying veterans and minority franchisees
may receive a discounted rate. The royalty fee ensures you
receive ongoing operational support and allows continued
use of Captain D’s trademarks.
Does Captain D’s offer financing?
We do not offer financing to franchisees; however,
we can provide a list of banks and financing institutions
that have expressed an interest in lending to Captain D’s
franchisees. To facilitate financing, Captain D’s is listed on
the SBA Registry.
Also through our partnership with BoeFly.com and
their powerful resources and processes, franchisees have
access to thousands of lenders through a single loan
request. BoeFly is secure and puts you in the driver’s seat
— improving your odds of accessing a small business loan
and ultimately getting better terms. In addition, BoeFly
automatically includes the Captain D’s material in your loan
package that lenders need to see.
Financing questions?
Through our relationship with BoeFly, you can receive
a free consult. Just call 1-800-277-3158 and reference
Captain D’s.
Financing questions?
Through our relationship with BoeFly, you can receive
a free consult. Just call 1-800-277-3158 and reference
Captain D’s.
31
How does Captain D’s handle real estate?
We use sophisticated site-analysis tools that
help franchisees assess sites based on trade area
demographics and competitive intelligence. You’ll have the
full support of our real estate team to give you confidence
in choosing the best location. If you already own property,
it will need to meet pre-established demographic and
location criteria. Our real estate team can provide you with
more information on our requirements.
Do you require franchise candidates to
have previous restaurant experience?
We require that the franchise operator (not necessarily
the franchisee) have at least two years of experience
managing a retail business. If the operator is not the
franchisee, we require the operator to have some
ownership interest in the franchise.
I am interested in opening a franchise. How
do I get started?
If you are an experienced restaurant or retail operator,
are passionate about service and hospitality, and you meet
our minimum financial requirements, please complete our
Request Information Form.
32
Meet the
Management
Team
Phil Greifeld,
President and Chief
Executive Officer
Phil Greifeld, President
and Chief Executive Officer
of Captain D’s since 2010, is
a seasoned industry veteran
with more than 20 years
of leadership experience
in the restaurant and retail
industries and a strong finance background. Phil joined
the Captain D’s team from Huddle House restaurants – a
420-unit casual dining restaurant chain where he was Chief
Executive Officer and President for 10 years, following Chief
Administrative and Chief Financial Officer positions at the
company.
Favorite Meal: You can’t go wrong with our delicious Wild
Alaskan Grilled Salmon served over rice.
Michael Arrowsmith,
Chief Development
Officer
Michael Arrowsmith,
Wendy Harkness,
Esq., SPHR,
Chief People Officer
Wendy Harkness is
the Chief People Officer for
Captain D’s. An industry
veteran with over two
decades of foodservice
experience, Wendy
leads Captain D’s human
resources strategy and execution, culture development,
training, internal communications, compliance programs,
and benefits strategy and administration.
Favorite D’s Meal: I’m a big fan of our lightly seasoned
blackened tilapia served with broccoli and a side salad.
Brad Reed,
Vice President of Franchise Operations
Brad Reed serves as Vice President of Franchise
Operations for Captain D’s, a position he has held since
May of 2013. Prior to that, Brad served as a Director of
Operations from February 2011 to May 2013 and as an
Area Director from May 2010 to February 2011.
Favorite D’s Meal: Most definitely the blackened
whitefish and shrimp skewer with steamed broccoli and
green beans, and a breadstick rather than hush puppies.
And I always add a piece of batter dipped fish!
Chief Development
Officer for Captain D’s, is
responsible for the brand’s
strategic growth through
company and franchise
restaurant development.
He leads franchise marketing and sales; real estate site
selection and management; as well as building design,
engineering and construction. A 25-year industry veteran,
Michael has held executive-level positions in Sales and
Finance with a wide variety of brands including Checkers
Drive-In Restaurants, Gloria Jean’s Coffee, and Denny’s
Restaurants.
My Favorite D’s Meal? How about two since we have
both grilled and fried product? I love our batter dipped
fish – there’s a reason it’s our top-selling product, it is a
phenomenal product! On the lighter side, our blackened
tilapia is outstanding and my go-to favorite.
33
Janet L. Duckham,
Vice President of
Purchasing
Janet Duckham is an
energetic and successful
leader of the restaurant
industry for 30 years.
She has held numerous
positions and has extensive
knowledge and skill in
Purchasing and Distribution, Operations, Management
Training, Quality Assurance and Marketing. Janet joined
Captain D’s in 2010 and serves as Vice President of
Purchasing, Distribution and Quality Assurance for both
Captain D’s and Grandy’s. Janet is a council board leader
of the World Groundfish Forum, an Advisory Board Member
of Intrafish and has been a speaker at numerous industry
events.
Favorite D’s Meal: My “go-to” meal is the 12-piece
Butterfly Shrimp with Coleslaw, Fries and our world famous
Hushpuppies with our Signature Tartar Sauce… and wash
this down with our fresh brewed tea!
Chris Crabtree,
Vice President of
Information Services
Chris is Vice President
of Information Services for
Captain D’s, a position he
has held for more than 20
years.
Favorite D’s Meal: Most
definitely our Nashville Hot
Fish with coleslaw and steamed broccoli!
Michael T. Folks,
Senior Vice
President, General
Counsel, and
Secretary
Michael Folks serves
as Senior Vice President
and General Counsel for
Captain D’s, where his
responsibilities include
Legal, Risk Management, Insurance, and Real Estate
Management for Captain D’s and its affiliate, Grandy’s, LLC.
During the period that Sagittarius Brands, Inc. owned both
Captain D’s and Del Taco LLC, Michael served as Senior
Vice President and General Counsel of Sagittarius Brands
and Del Taco, a then privately-owned Mexican restaurant
and franchising company.
Favorite D’s Meal: I like Captain D’s Surf and Turf meal
with mac & cheese (instead of broccoli) the best.
34
Next Steps
Captain D’s is looking for driven,
experienced restaurant or retail operators
to expand our footprint
There’s a lot to like at Captain D’s: we’re the No. 1
seafood chain by average unit volume in The QSR 50, the
annual ranking by QSR Magazine. We received noteworthy
recognition in the franchise industry by setting brand AUV
records in 2012, 2013, and 2014, and 2015 will mark our
5th consecutive year of sales growth. We are on track for
another record year.
If you are considering a franchise investment, Captain
D’s is a solid choice in one of the least competitive markets
in food segments.
Getting Started
Start by filling out the form on any page of our website
or give us a call at 866-955-1792. A member of the
Captain D’s franchise development team will connect with
you to answer any questions you may have and help guide
you through the formal application process. We’ll start
with a screening process to ensure you meet our minimum
financial requirements and we’ll provide an overview of our
opportunity.
Application & Disclosure Document
Upon completion of your Franchise Application, we will
conduct a background and credit history check. At this
point, we will provide you with our Franchise Disclosure
Document, which further elaborates on all of the details
associated with a Captain D’s franchise opportunity.
Interview
At this stage, you or the operator in your group will
meet with us for an in-depth interview. This interview gives
us an opportunity to share a more detailed view into our
company, while also gaining a better understanding of your
business objectives and plans.
Due Diligence & Observation
To help refine your business plan, we encourage
franchise applicants to invest time conducting their own
due diligence, including speaking with other Captain D’s
franchisees and observing how our restaurants are run.
Business Plan
You will develop a business plan that outlines your goals
for your Captain D’s franchise, as well as strategies for
managing development, operations, finances, marketing,
and other aspects of your business.
Captain D’s Day
At this point, we’ll invite you to our headquarters
in Nashville, Tennessee, where you’ll meet our entire
corporate staff and we’ll answer any final questions you
may have.
Site Selection & Real Estate
We will work with you to find the right location for your
seafood restaurant. You’ll have the full support of our real
estate team and site selection tools to give you confidence
in choosing the best location. If you already own property,
it will need to meet pre-established demographic and
location criteria.
35
Restaurant Development
Grand Opening Activities
Once your site is approved, you’ll begin developing your
site. We’ll help by providing floor plan layouts and exterior
designs that can be used by your construction team to
streamline your development process. We’ll also work
closely with you throughout the process to make sure your
restaurant meets our guidelines.
Your new restaurant opening manager, along with our
marketing team, will assist you in developing a series of
Grand Opening activities and events, along with a local
store marketing campaign. Congratulations – your Captain
D’s is now up and running!
Training & Support
During a comprehensive course with a duration that’s
based on experience, we’ll provide you with the skills
and knowledge to operate your seafood restaurant to the
highest standards. You’ll learn the ins and outs of Captain
D’s through a blend of computer-based and hands-on
learning—and, as an added level of support, we’ll provide
you with a new restaurant opening manager and a select
team of corporate trainers to assist you with your opening.
36

Captain D`s Free Information Franchise Report

Transcription

Similar documents

instant literary quiz - The Ambrose Bierce Site

Obituary - Navy Supply Corps Foundation

July 2015 - Goshen First United Methodist Church

Dummer Golf Club Minutes of a Liaison Meeting Held on 176 |anury

Packet Pickup Race Date: March 19, 2016 Register Online at www

Student Leaders 2013 House Captains and Vice Captains

Party Invite - Captain`s Cove Online

newsletter - Jackson Park Yacht Club

GTMailPlus - GTMaritime

PDF of this page - Peel`s Prairie Provinces