Franchisor Stories
Franchise Opportunity Deep Dive: Captain D’s is a quick-service seafood restaurant franchise specializing in hand-battered fish, shrimp, grilled seafood and Southern-style sides.
Captain D’s is a Nashville, Tennessee-based quick-service seafood restaurant chain known for its hand-battered fish, shrimp, grilled seafood and Southern-style side dishes. The brand operates company-owned and franchised restaurants and offers several restaurant formats, including traditional freestanding locations, endcaps with drive-thrus and inline restaurants. Its franchise opportunity is designed for restaurant operators and investors interested in the quick-service seafood category.
Captain D’s was founded in 1969 by Raymond L. Danner Sr. in Donelson, Tennessee, a suburb of Nashville. The restaurant originally operated as Mr. D’s Seafood and Hamburgers, offering quality seafood at affordable prices. The company changed its name to Captain D’s in 1974 to concentrate on fish, shrimp and traditional seafood accompaniments.
Over the following decades, Captain D’s expanded throughout the United States and developed a recognizable position in the quick-service seafood category. The brand continues to emphasize freshly prepared food, value and convenient service while introducing new restaurant designs and menu offerings.
Mission: To make quality seafood accessible to customers by serving freshly prepared meals at reasonable prices in a welcoming environment.
Vision: To bring the Captain D’s seafood experience to additional communities through restaurant development, menu innovation and domestic and international expansion.
Captain D’s is pursuing expansion in markets throughout the United States, including areas where the chain has a limited presence. Target growth states include Arizona, Arkansas, Colorado, Connecticut, Delaware, Florida, Idaho, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland and Massachusetts. Alabama, Georgia, Kentucky and Tennessee are currently sold out.
Prospective franchisees can review the company's interactive map to explore available markets and contact the development team about specific territories.
Initial Costs: The estimated initial investment required to begin operation of a Captain D’s franchise ranges from $662,000 to $1,040,500 for an inline restaurant, $752,000 to $1,185,500 for an endcap restaurant with a drive-thru, $1,325,000 to $1,638,000 for a 32-seat prototype and $1,453,000 to $1,862,100 for a 44-seat prototype. The 2026 Franchise Disclosure Document (FDD) breaks these costs down as follows:
| Type of Expenditure | 44-Seat Prototype | 32-Seat Prototype | ||
Min | Max | Min | Max | |
| Franchise Fee | $35,000 | $35,000 | $35,000 | $35,000 |
| Building & Leasehold Improvements | $925,000 | $1,200,000 | $825,000 | $1,020,000 |
| Training Expenses | $25,000 | $46,000 | $25,000 | $46,000 |
| Equipment | $375,000 | $415,000 | $350,000 | $375,000 |
| Computer Systems | $31,000 | $34,100 | $28,000 | $30,800 |
| Inventory | $6,000 | $8,000 | $6,000 | $8,000 |
| Misc. Operating Expenses | $5,000 | $9,000 | $5,000 | $9,000 |
| Insurance | $11,000 | $25,000 | $11,000 | $25,000 |
| Additional Funds (3 Months) | $40,000 | $90,000 | $40,000 | $90,000 |
| Type of Expenditure | Endcap w. Drive-Thru | Inline | ||
Min | Max | Min | Max | |
| Franchise Fee | $35,000 | $35,000 | $35,000 | $35,000 |
| Building & Leasehold Improvements | $350,000 | $570,000 | $275,000 | $510,000 |
| Training Expenses | $25,000 | $46,000 | $25,000 | $36,000 |
| Equipment | $255,000 | $375,000 | $240,000 | $300,000 |
| Computer Systems | $25,000 | $27,500 | $25,000 | $27,500 |
| Inventory | $6,000 | $8,000 | $6,000 | $8,000 |
| Misc. Operating Expenses | $5,000 | $9,000 | $5,000 | $9,000 |
| Insurance | $11,000 | $25,000 | $11,000 | $25,000 |
| Additional Funds (3 Months) | $40,000 | $90,000 | $40,000 | $90,000 |
Initial Franchise Fee: According to the 2026 FDD, Captain D’s charges a standard initial franchise fee of $35,000 per restaurant. Franchisees generally pay half of the fee ($17,500) when signing the development agreement and the remaining half when signing the franchise agreement after site approval.
Captain D’s also offers a development incentive program for agreements signed before May 1, 2028. The initial franchise fee decreases according to the number of restaurants committed:
Restaurant Commitment | Initial Franchise Fee Per Restaurant |
1–2 | $35,000 |
3–5 | $25,000 |
6–10 | $21,000 |
11–15 | $19,000 |
16–20 | $17,500 |
Under the incentive program, qualifying restaurants that open within 60 days of their scheduled opening date receive a reduced royalty rate of 2.25% of gross sales for their first 12 months.
Captain D’s also offers a Veterans Franchise Program. Approved veterans who hold a controlling interest in the franchise business receive a 50% reduction in the standard franchise fee for their first restaurant, bringing it to $17,500. Their royalty rate is reduced to 2.5% of gross sales during the first full year of operation.
Ongoing Fees: According to the 2026 FDD, Captain D’s franchisees are responsible for the following recurring payments and expenditures:
| Type of Fee | Amount |
| Royalty | 4.5% of gross sales/week |
| Advertising Fee | 1% of gross sales/week |
| Advertising Marketing Contribution | 1%–1.5% of gross sales/week |
| Point-of-Sale and Computer-Based Training Systems Maintenance and Support | Up to $236/month |
ROI Potential: According to the 2026 FDD, the 210 franchised Captain D’s restaurants operating continuously throughout fiscal year 2025 reported the following annual gross sales:
| Sales Group | Average | Median | High | Low |
| Top Third (70) | $1,524,798 | $1,489,085 | $2,782,545 | $1,179,140 |
| Middle Third (70) | $1,024,694 | $1,042,475 | $1,177,111 | $848,474 |
| Bottom Third (70) | $698,105 | $724,891 | $845,752 | $172,390 |
| Total (210) | $1,082,533 | $1,042,475 | $2,782,545 | $172,390 |
Captain D’s assists franchisees with restaurant development, including site evaluation, equipment selection and preparation for opening. Its real estate team helps operators assess potential locations based on traffic counts, surrounding demographics, competition and other factors.
Franchisees receive restaurant specifications, supplier information and operational guidelines. The franchisor also provides an opening team to assist with launching the restaurant and training employees. According to the FDD, Captain D’s covers the team's compensation and up to $8,000 in travel and lodging expenses.
Captain D’s provides training for franchisees and restaurant management personnel on the procedures required to operate a location. Training covers food preparation, customer service, employee management, inventory control and compliance with company standards.
The franchisor also provides on-site assistance during restaurant openings to help train employees and establish daily operating procedures. Franchisees are responsible for their employees' wages and other expenses incurred during training.
Captain D’s provides ongoing guidance on restaurant operations, including equipment selection, food preparation, purchasing, inventory management and employee training.
Franchisees also receive access to national and regional marketing programs. These include digital advertising, social media promotions, search engine marketing and other advertising materials developed by the franchisor.
The brand maintains franchisee advisory groups that provide opportunities for owners to offer feedback on marketing and broader system matters.
Captain D’s requires franchisees to use approved point-of-sale and computer systems. According to its 2026 FDD, the technology package includes a back-office computer, a tablet, point-of-sale terminals and order monitors.
The brand also provides computer-based training systems and related maintenance and support services. These tools help franchisees manage transactions, train employees and maintain consistency with the company's operating requirements.
Captain D’s seeks candidates with business ownership or management experience, particularly in restaurants, retail or hospitality. The company requires the designated franchise operator to have at least two years of retail business management experience.
The operator does not necessarily have to be the franchise owner. However, when a separate operator manages the restaurant, that individual must hold an ownership interest in the franchise business. Candidates must also demonstrate the financial resources and management capabilities necessary to develop and operate a restaurant.
Captain D’s requires franchisees to maintain company standards for food preparation, restaurant cleanliness, customer service, staffing and overall operations.
According to the FDD, a typical restaurant employs approximately 20 to 35 people, depending on its size and sales volume. The company recommends hiring 40 to 45 employees for the opening and initial operating period.
The brand allows an approved designated operator to manage the restaurant, meaning the franchise owner does not necessarily have to oversee daily operations personally. However, franchisees remain responsible for meeting contractual obligations and maintaining qualified management.
Captain D’s does not directly finance franchise investments or guarantee franchisee loans. However, the company's franchise website identifies a relationship with BoeFly, an online lending marketplace that helps prospective franchisees connect with lenders.
Captain D’s franchisee Lisa Starnes operates seven restaurants in the Dallas-Fort Worth area, generating a combined $10 million in annual revenue. She took over the business in 1995 after her husband suffered a heart attack, inheriting 10 struggling restaurants and eventually accumulating $700,000 in debt. By 1998, she had paid off the debt and stabilized the business. Starnes has since continued expanding, including plans for a new endcap restaurant in Arlington, Texas.
“Captain D’s keeps finding new ways to make a concept that started in 1969 still be relevant. The past is terrific because it brings you here, but I want to be part of the future too.”
- Lisa Starnes, Franchisee — Dallas-Fort Worth, Texas (read her full story here)
Quick-service seafood restaurants have opportunities for growth as consumers seek convenient, affordable alternatives to traditional fast food. The U.S. seafood market is projected to grow from $35.2 billion in 2025 to $45.8 billion by 2031, reflecting continued demand for seafood across retail and foodservice channels. For quick-service operators, accessible pricing, drive-thru convenience and menu variety can help attract customers looking for seafood without the cost or time commitment of a full-service restaurant. However, fluctuating seafood prices and rising operating expenses remain challenges for brands seeking to expand.
Captain D’s competes primarily with other seafood-focused restaurant chains, as well as larger quick-service brands that offer fish and shrimp products. Its extensive operating history, seafood specialization and variety of restaurant formats distinguish it within the category.
Primary competitors include Long John Silver’s, Arthur Treacher’s Fish & Chips, Popeyes Louisiana Kitchen and Red Lobster.
7. What Is the Application Process for Captain D’s Franchisees?
The typical period between paying the development fee for a single-unit agreement and opening a restaurant ranges from 180 to 365 days. Actual timing depends on site selection, financing, permits, construction and other development considerations.
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