What is the initial franchise fee for a single Crab N Spice unit?
Crab_N_Spice Franchise · 2024 FDDAnswer from 2024 FDD Document
EES**
Unit Fees
The Initial Fees you will pay to us include the training fee of $20,000, the site approval fee of $5,000, and the franchise fee of $20,000. This fee is uniform and not refundable.
You must purchase the seasoning to be used in the operation of the franchised business from us. These products and seasoning will be used in a variety of the menu options. The total inventory investment that you will pay to us is $1,000 - $1,500.
Multi-Unit Development
If you and we agree that you will develop multiple franchises, then you will sign our Multi-Unit Development Agreement ("MUDA") in the form of Exhibit C to this disclosure document. Your franchise fees will be $20,000 for each franchise but you will not pay an additional training fee for units managed by the same person. The site approval fee will be collected for each site as they are approved. You will pay all franchise fees upon signing the MUDA. They are not refundable.
Source: Item 5 — INITIAL FEES (FDD page 11)
What This Means (2024 FDD)
According to the 2024 Crab N Spice FDD, the initial fees for a single unit include a training fee of $20,000, a site approval fee of $5,000, and a franchise fee of $20,000. Therefore, the total initial franchise fee for a single Crab N Spice unit is $45,000. This fee is uniform and non-refundable.
In addition to the initial fees, franchisees must purchase seasonings from Crab N Spice, with a total inventory investment ranging from $1,000 to $1,500. This cost is separate from the initial franchise fee and contributes to the overall initial investment required to start the business.
For franchisees who sign a Multi-Unit Development Agreement (MUDA) to develop multiple franchises, the franchise fees are $20,000 for each franchise. However, these franchisees will not pay an additional training fee for units managed by the same person. The site approval fee will still be collected for each site as they are approved. All franchise fees under the MUDA are payable upon signing the agreement and are non-refundable.