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Captain D's - Minority Franchise Program
If
you've always dreamed of owning a restaurant
here's an opportunity for you. Captain
D's Seafood, known for its relaxed
seaside ambiance and high-quality, quick-service
seafood, is in the midst of an aggressive
franchise expansion phase. With over 560
company owned and franchised units across
twenty-two U.S. states, Captain D's
is enjoying a solid reputation and ever-growing
success. To attract more minority franchise
owners, the company offers a number of
incentives.
The
initial franchise fee to open a Captain
D's traditional restaurant is $20,000
and, for minority investors, 95% of said
amount is deferred for three years. This
incentive applies only to the first unit
opened. Upon signing a development agreement
you would therefore be responsible for
paying $1,000. The balance of $19,000
is due, as a lump sum, on the third anniversary
of your first unit's opening date. This
incentive does not apply to non-traditional
restaurants.
In
addition, minority investors qualify for
reduced royalty fees. Standard royalty
fees are 3.5% of gross sales. For minorities,
however, royalty fees are 1.5% of gross
sales during the first year of operation.
In the second year they become 2.5%. Starting
in the third year they revert to the standard
3.5%. All investors (minority and non-minority
alike) also pay an advertising fee of
5.25% of gross sales.
You
qualify for Captain D's minority
franchise program if you fit the U.S.
federal definition of minorities. You
must be a U.S. citizen of African American,
Hispanic, Native American, Asian Pacific
or Asian Indian heritage. At this time
franchises are available only in the U.S.
In
addition the company requires a financial
qualification of $400,000 net worth and
$150,000 in liquid assets. Captain
D's looks for investors who support
the company's core values which are spelled
out in FASTER.
•
F for freshly prepared seafood
• A for awesome hospitality
• S for satisfaction of guests
• T for teamwork
• E for excellence
• R for respect.
Thomas
Mercer, Franchise Owner
It
began in grad school back in 1993 as part
of a marketing project. Thomas Mercer,
at the time an officer with the U.S. Army,
and two of his friends (fellow Army officers)
were working towards their Master of Science
degrees in management. All three wanted
to run their own business and, together,
were researching the fast food sector
through a school project.
What
they learned pointed them to the seafood
segment in particular. "We discovered
that," Thomas explains, "from among what
was out there the seafood segment was
not completely saturated. So, our project
turned to seafood and Captain D's
stood out as one of the better franchises
available in this area."
Equipped
with in-depth analyses and detailed survey
statistics, the three decided to pursue
a Captain D's franchise. Their
joint dream came true when they opened
a restaurant in 1998 in St. Peters, Missouri
with Thomas as the leader of their venture.
"Captain
D's has gone above and beyond what
we expected," Thomas is pleased to say.
"What drew us initially were their high
standards and level of support, not just
at start-up but also after years of operation.
When we looked at several different factors,
including brand name recognition, stability,
support and average tenure, all came together
so well that making Captain D's
was the right choice for us."
Thomas
and his business partners went through
six weeks of intensive training in Nashville,
Tennessee. When construction of their
franchise was about to begin, Captain
D's construction department was available
to the trio for consultation. "At the
very end, before we opened," says Thomas,
"the VP and director of construction and
many other construction experts were there
to make sure everything was up to code
and to the high standards of Captain
D's."
A
week prior to opening day, the parent
company sent out five highly skilled representatives
to St. Peters, Missouri. They remained
there two weeks, overseeing every aspect
of opening and running the new restaurant.
"All these reps were former Captain
D's managers," says Thomas, "and each
had expertise in a specific area." One
specialized in staff hiring and training,
another in food preparation, still another
in administration (e.g. food cost, maintenance,
inventory). This team helped Thomas and
his business partners get off to a great
start.
"If
we did not know something, we had an expert
right there to ask," says Thomas. "Even
after they left, if we needed additional
help they were quick to send a representative
back. Captain D's goal is to make
you successful. They go out of their way
to help."
The
restaurant has been operating for five
years now and business is good. "While
we have not exceeded what we projected,
we have been able to maintain a good financial
standing," Thomas reports.
Naturally
there were bumps along the way. One of
the first was the culture shock the three
experienced making the transition from
being military officers to running a restaurant
in a civilian environment. "When you give
an order in the Army, people listen. That's
not necessarily the case in the real world,
though," Thomas laughs.
And
during the process, they lost one of the
partners. While his friend Joseph Jupiter
remains on board, the third business partner
left. Which leads Thomas to offer this
important piece of advice to prospective
franchise owners. "Don't expect to get
rich overnight", he says. "We lost a business
partner because of that expectation."
In
spite of the ups and downs, Thomas has
no regrets. Running his own Captain
D's franchise is a dream come true.
He is truly meeting the desire to be his
own boss and feed his entrepreneurial
spirit!
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