What aspects of the Crab N Spice brand system are subject to specifications and standards?
Crab_N_Spice Franchise · 2024 FDDAnswer from 2024 FDD Document
We issue specifications and standards to you for applicable aspects of the franchise in our Manual and/or in written directives. We may issue new specifications and standards for any aspect of our brand system, or modify existing specifications and standards, at any time by revising our Manual and/or issuing new written directives (which may be communicated to you by any method we choose). We will generally (but are not obligated to) issue new or revised specifications only after thorough testing in our headquarters, in company-owned outlets, and/or a limited market test in multiple units.
- A. Real Estate. Your business location is subject to our approval and must meet our specifications. You must use reasonable efforts to have your landlord sign our form of Rider to Lease Agreement (attached to this disclosure document as Exhibit D).
- B. Insurance. You must obtain insurance as described in the Franchise Agreement and in our Manual, which includes (i) "Special" causes of loss coverage forms, including fire and extended coverage, crime, vandalism, and malicious mischief, on all property of the Business, for full repair and replacement value (subject to a reasonable deductible); (ii) Business interruption insurance covering at least 12 months of income; (iii) Commercial General Liability insurance, including products liability coverage, and broad form commercial liability coverage, written on an "occurrence" policy form in an amount of not less than $1,000,000 single limit per occurrence and $2,000,000 aggregate limit, (iv) Business Automobile Liability insurance including owned, leased, non-owned and hired automobiles coverage in an amount of not less than $1,000,000, and (v) Workers Compensation coverage as required by state law. Your policies (other than Workers Compensation) must list us and our affiliates as an additional insured, must include a waiver of subrogation in favor of us and our affiliates, must be primary and non-contributing with any insurance carried by us or our affiliates, and must stipulate that we receive 30 days' prior written notice of cancellation.
- C. Point-of-sale software and hardware, and related software and hardware. You must purchase (or lease) the point-of-sale software and hardware, and related software and hardware, that we specify and you will be required to purchase the email addresses you will use in operating the franchised business from us. See Item 11 for more details.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 17–19)
What This Means (2024 FDD)
According to the 2024 Crab N Spice Franchise Disclosure Document, the franchise system has several aspects subject to specifications and standards. Crab N Spice issues these specifications and standards for applicable aspects of the franchise in their Manual and/or in written directives. These standards can be modified at any time by revising the Manual or issuing new written directives.
The FDD specifies that real estate, insurance, and point-of-sale systems are subject to Crab N Spice's specifications. The business location must meet Crab N Spice's specifications, and the franchisee must try to get the landlord to sign Crab N Spice's Rider to Lease Agreement form. Franchisees must obtain specific insurance coverages, including property, business interruption, commercial general liability ($1,000,000 single limit per occurrence and $2,000,000 aggregate limit), business automobile liability ($1,000,000), and workers compensation, with Crab N Spice listed as an additional insured. Franchisees must also purchase or lease the point-of-sale software and hardware that Crab N Spice specifies, as well as purchase email addresses from them.
Crab N Spice may issue new specifications and standards for any aspect of their brand system, or modify existing ones, at any time. While they generally test new or revised specifications at headquarters, company-owned outlets, or through limited market tests, they are not obligated to do so. This gives Crab N Spice considerable latitude to change requirements, potentially impacting a franchisee's costs and operations. Prospective franchisees should carefully review the current Manual and Franchise Agreement to understand all existing specifications and standards, and inquire about any planned changes.