As a Crab N Spice franchisee, am I required to purchase seasoning from the franchisor?
Crab_N_Spice Franchise · 2024 FDDAnswer from 2024 FDD Document
- D. Food Suppliers. You will purchase all of your food products and supplies from our approved suppliers.
- E. Proprietary Products. Crab N Spice Seasoning and Lemon Garlic Seasoning and branded apparel will be purchased from us directly. We are the only approved supplier for these products.
Us or our Affiliates as Supplier
We will be the supplier of seasonings that you must purchase. Outside of this, you will not purchase any products or services from us or our Affiliates.
Ownership of Suppliers
Outside of your requirement to purchase some of the inventory from us, none of our officers owns an interest in any supplier to our franchisees.
Alternative Suppliers
If you want to use a supplier that is not on our list of approved suppliers, you must request our approval in writing. We will grant or revoke approvals of suppliers based on criteria appropriate to the situation, which may include evaluations of the supplier's capacity, quality, financial stability, reputation, and reliability; inspections; product testing, and performance reviews. Our criteria for approving suppliers are not available to you. We permit you to contract with alternative suppliers who meet our criteria only if you request our approval in writing, and we grant approval. There is no fee for us to review or approve an alternate supplier. We will provide you with written notification of the approval or disapproval of any supplier you propose within 30 days after receipt of your request. We may grant approvals of new suppliers or revoke past approvals of suppliers on written notice to you, or by updating our Manual.
Source: Item 5 — INITIAL FEES (FDD page 11)
What This Means (2024 FDD)
According to the 2024 Crab N Spice Franchise Disclosure Document, franchisees are required to purchase Crab N Spice Seasoning and Lemon Garlic Seasoning directly from the franchisor. Crab N Spice is the only approved supplier for these proprietary products.
This requirement ensures consistency in the taste and quality of the food served at all Crab N Spice locations, which is a common practice in franchising. By mandating the purchase of specific seasonings from an approved source, Crab N Spice aims to maintain brand uniformity and customer expectations.
While franchisees must purchase these specific seasonings from Crab N Spice, they are not required to purchase other products or services from the franchisor or its affiliates. If a franchisee wishes to use a supplier not already approved, they must submit a written request for approval. Crab N Spice will evaluate the proposed supplier based on criteria such as capacity, quality, financial stability, reputation, and reliability. The franchisor will provide a written notification of approval or disapproval within 30 days of the request, and there is no fee for this review process. Crab N Spice may also update the approved supplier list by written notice or updates to the manual.