Is a Crab N Spice franchisee required to personally conduct 'on-premises' supervision of their business?
Crab_N_Spice Franchise · 2024 FDDAnswer from 2024 FDD Document
You are not required to participate personally in the direct operation of your business. However, we recommend that you participate.
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You are not required to personally conduct "on-premises" supervision (that is, act as general manager) of your business. However, we recommend on-premises supervision by you.
There is no limit on who you can hire as an on-premises supervisor. The general manager of your business (whether that is you or a hired person) must successfully complete our training program.
If the franchise business is owned by an entity, we do not require that the general manager own any equity in the entity.
Restrictions on Your Manager
If we request, you must have your general manager sign a confidentiality and non-compete agreement. We do not require you place any other restrictions on your manager.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 31)
What This Means (2024 FDD)
According to the 2024 Crab N Spice Franchise Disclosure Document, franchisees are not required to personally conduct 'on-premises' supervision of their business. However, Crab N Spice recommends that franchisees do so.
While not mandatory, if a franchisee chooses not to manage the business directly, they can hire an on-premises supervisor. There are no restrictions specified regarding who can be hired as an on-premises supervisor. Whether the franchisee or a hired person, the general manager must successfully complete Crab N Spice's training program.
If the Crab N Spice franchise is owned by an entity, the general manager is not required to own any equity in the entity. Crab N Spice may request that the general manager sign a confidentiality and non-compete agreement, but no other restrictions are required to be placed on the manager.