What articles and sections of the Crab N Spice franchise agreement address fees?
Crab_N_Spice Franchise · 2024 FDDAnswer from 2024 FDD Document
e businesses.
1. Multi-Unit Commitment.
(a) Development Schedule; Fee. Franchisee shall develop and open Crab N Spice businesses on the following schedule:
| Store # | Deadline for Opening | Total # of Stores to be Open and Operating On Deadline | Initial Franchise Fee |
|---|---|---|---|
| 1 | 1 | $ | |
| 2 | 2 | $ | |
| 3 | 3 | $ | |
| 4 | 4 | $ | |
| 5 | 5 Total Initial Franchise Fee: | $ |
- (b) Payment**.** Upon execution of this MUDA, Franchisee shall pay the total Initial Franchise Fee to CNS Franchising. The Initial Franchise Fee is non-refundable.
- 2. Form of Agreement. For Store #1, Franchisee and CNS Franchising have executed the Franchise Agreement simultaneously with this MUDA. For each additional Crab N Spice franchise, Franchisee shall execute CNS Franchising's then-current standard form of franchise agreement no later than three business days after Franchisee leases or acquires a location.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 19–20)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, the specific articles and sections of the Crab N Spice franchise agreement that comprehensively address all the various fees are not detailed in the provided excerpts. While there is mention of an 'Initial Franchise Fee' within the context of a Multi-Unit Development Agreement (MUDA), the excerpts do not specify which sections of the franchise agreement itself cover the full scope of fees a franchisee might encounter. The excerpts do mention that for each additional Crab N Spice franchise under a MUDA, the franchisee must execute the franchisor's current standard form of franchise agreement. This suggests that fee details would be found within that separate franchise agreement.
Item 11 mentions that if Crab N Spice provides in-person support at the franchisee's request, they may charge a fee (currently $500 per day) plus out-of-pocket expenses. This indicates that fees beyond the initial franchise fee may be applicable under certain circumstances. Additionally, Item 11 refers to the Marketing Fund, implying potential contributions or fees associated with marketing activities. However, the specific sections outlining these fees are not provided.
To fully understand all fee obligations, a prospective Crab N Spice franchisee should carefully review the entire franchise agreement and its attachments, specifically looking for sections detailing initial fees, ongoing royalties, marketing contributions, technology fees, transfer fees, renewal fees, and any other potential charges. It would also be prudent to discuss these fees in detail with the franchisor and current franchisees to gain a comprehensive understanding of the financial commitments involved.