If Crab N Spice provides in-person support, when is the fee due?
Crab_N_Spice Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Our then-current fee, | On demand | If we provide in-person support to you in | |
| plus our expenses. | response to your request, we may charge | ||
| Currently, $500 per | this fee plus any out-of-pocket expenses | ||
| day. | (such as travel, lodging, and meals for | ||
| employees providing onsite support). | |||
| This fee is payable to the Marketing Fund | |||
| if you use unauthorized advertising in | |||
| violation of the terms of the Franchise | |||
| Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 11–14)
What This Means (2024 FDD)
According to Crab N Spice's 2024 Franchise Disclosure Document, if the company provides in-person support in response to a franchisee's request, Crab N Spice may charge a fee, in addition to expenses. The current fee for in-person support is $500 per day. This fee, along with any out-of-pocket expenses such as travel, lodging, and meals for the employees providing the support, is due on demand.
This means that a Crab N Spice franchisee needing on-site assistance from the franchisor should be prepared to pay $500 per day for the support, plus cover all associated travel and accommodation costs for the support team. The franchisee will need to pay this amount when Crab N Spice demands it.
It is important to note that the FDD also states that this fee is payable to the Marketing Fund if the franchisee uses unauthorized advertising in violation of the Franchise Agreement. Franchisees should ensure they understand the circumstances under which this fee may be charged to avoid unexpected costs.