What happens if Crab N Spice and the franchisee cannot agree on a site?
Crab_N_Spice Franchise · 2024 FDDAnswer from 2024 FDD Document
If we and you cannot agree on a site, you will be unable to comply with your obligation to develop and open the franchise by the deadline stated in the franchise agreement.
Unless we agree to extend the deadline, you will be in default and we may terminate your franchise agreement.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 20–27)
What This Means (2024 FDD)
According to the 2024 Crab N Spice Franchise Disclosure Document, if the franchisee and Crab N Spice cannot agree on a site, the franchisee will not be able to meet their obligation to develop and open the franchise by the deadline outlined in the franchise agreement.
Unless Crab N Spice agrees to extend the deadline, the franchisee will be in default of the agreement. This gives Crab N Spice the right to terminate the franchise agreement.
Crab N Spice does not select the site for the franchisee, but the site is subject to their approval. To get approval, the franchisee must provide all required information and documents about the site. Crab N Spice will consider factors such as general location, neighborhood, competition, trade area demographics, traffic patterns, parking, size, physical characteristics of existing buildings, and lease terms when approving a site. Crab N Spice has 30 days to approve or disapprove a proposed site after the franchisee submits all required documents and information.