Long John Silver's franchise startup costs run $1.27M–$2.0M for America's largest fast-service seafood QSR with 700+ locations. The brand's seafood and chicken menu occupies a relatively uncrowded fast-food category segment.
Long John Silver's is a seafood QSR founded in Lexington, Kentucky in 1969. With 700+ locations across the United States, Long John Silver's is the largest fast-service seafood chain in the country. The menu features battered fish, shrimp, chicken, hush puppies, and coleslaw — a category with limited direct competition from national QSR brands, since most burger, chicken, and sandwich chains don't compete directly in seafood. Long John Silver's has historically operated a significant number of A&W co-branded locations, combining two QSR concepts under one roof to drive traffic from different dayparts and customer segments.
Per the current FDD filed under the FTC Franchise Rule (16 CFR Part 436), total estimated initial investment for a Long John Silver's franchise runs $1,270,000–$2,000,000. The fryer-heavy kitchen and drive-through format drive higher equipment costs relative to counter-service sandwich concepts:
Long John Silver's charges a 5% royalty on gross sales plus a 3% advertising fund contribution, for a combined 8% of gross sales. The 5% royalty is standard for the QSR category. The $20,000 franchise fee is below the QSR average, reflecting the brand's growth focus.
Long John Silver's is listed on the SBA Franchise Directory, qualifying franchisees for expedited SBA loan processing. Financing paths:
Seafood QSR concepts in high-traffic locations typically target break-even within 36–54 months at the $1.27M–$2.0M investment level. Long John Silver's limited direct seafood competition in QSR supports pricing power, but brand recognition outside the Southeast and Midwest is lower than national burger or chicken chains. A&W co-branded locations can improve unit economics by driving dual-brand traffic. Operators should assess trade area familiarity with Long John Silver's seafood menu before committing.
Long John Silver's suits operators with QSR development experience and comfort managing a fryer-intensive kitchen. The seafood category requires more stringent food safety and oil management protocols than burger or sandwich concepts. Typical financial benchmarks are net worth of $600K+ and liquid capital of $200K+. Operators with existing A&W franchise rights may be able to pursue a co-branded unit, which can improve overall unit economics.
Long John Silver's is on the SBA Franchise Directory, so SBA-approved lenders can process applications without individual agreement review. At $1.27M–$2.0M, this is a mid-to-upper QSR investment. Here is what lenders evaluate per SBA SOP 50 10 7:
SBA 7(a) is the standard structure — covering franchise fee, leasehold improvements, kitchen equipment, and working capital under a 10-year term. For owned real estate, SBA 504 provides long-term fixed-rate financing with SBA 7(a) covering soft costs. Use our SBA loan payment calculator to model monthly payments at your target loan amount before applying.
SBA guidelines set a minimum DSCR of 1.15× — the business must generate $1.15 in operating cash flow for every $1.00 in annual debt service. In practice, lenders underwriting $1.27M–$2.0M QSR builds typically require 1.25×–1.35× to account for the construction period and 12–18 month ramp. Pro forma projections should use conservative first-year AUV assumptions and stress-test the 8% combined royalty and ad fund load. Source: SBA Standard Operating Procedure 50 10 7 (sba.gov).
SBA requires a minimum 10% equity injection of total project cost. At $1.27M–$2.0M, lenders typically expect 20–25% — meaning $254K–$500K in documented borrower equity. Equity can come from personal savings or ROBS (retirement funds rolled into the business without early withdrawal penalties). Borrowed equity is generally not acceptable without SBA approval. Source: SBA SOP 50 10 7, Subpart B, Chapter 4.
ClearValue Lending works with QSR and seafood franchise operators on SBA, equipment, and working capital financing. Apply for franchise financing at Find my match. Your file routes to one matched lender.
Per the current FDD, total estimated initial investment runs $1,270,000–$2,000,000. The building or leasehold improvements, fryer and kitchen equipment, and drive-through hardware are the primary cost drivers. The $20,000 franchise fee is below the QSR average.
Long John Silver's charges a 5% royalty on gross sales plus a 3% advertising fund contribution, for a combined 8% of gross sales.
Yes. Long John Silver's is on the SBA Franchise Directory. SBA 7(a) covers leased locations within standard program limits. SBA 504 is suited for owned freestanding pad locations. Kitchen and fryer equipment can be financed separately via equipment lending.
Long John Silver's has historically operated co-branded units with A&W Root Beer, combining seafood and root beer/burger menus under one roof. Co-branded units aim to drive dual-brand traffic and improve per-location unit economics. Co-branding requires separate A&W franchise rights and approval from both franchisors.
The seafood QSR category is significantly less crowded than burger, chicken, or sandwich segments. Long John Silver's operates with limited direct national competitors at the QSR price point, which supports category pricing power. Regional seafood chains and casual dining seafood concepts provide some competition in coastal and Southern markets.