factual

Does Crab N Spice have any obligations to fulfill before a franchisee opens their Crab N Spice business?

Crab_N_Spice Franchise · 2024 FDD

Answer from 2024 FDD Document

[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING]

Item 11 FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING

Except as listed below, we are not required to provide you with any assistance.

Our Pre-Opening Obligations

Before you open your business:

  • A. Your site. We will review and advise you regarding potential locations that you submit to us. (Section 5.4).

If you sign a Multi-Unit Development Agreement, we will approve the location of future sites and territories for those sites, and our then-current standards for sites and territories will apply.

We are not obligated to further assist you in locating a site or negotiating the purchase or lease of the site.

  • (i) We generally do not own your premises.

  • (ii) If your site is not already known and approved by us when you sign your franchise agreement, then we and you will specify in your franchise agreement the area in which you must select a site (Franchise Agreement, Summary Page).

We do not select your site.

Your site is subject to our approval.

To obtain our approval, you must provide all information and documents about the site that we require.

  • (iii) The factors we consider in approving sites are general location and neighborhood, competition, trade area demographics, traffic patterns, parking, size, physical characteristics of existing buildings, and lease terms.

  • (iv) The time limit for us to approve or disapprove your proposed site is 30 days after you submit all of our required documents and information. (Section 6.1).

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.

  • (v) We are not obligated to assist you in conforming the premises of your site to local ordinances and building codes and obtaining any required permits.

This will be your responsibility.

  • B. Constructing, remodeling, or decorating the premises.

We will provide you with a set of our standard building plans and specifications and/or standard recommended floor plans, and our specifications for required decor (Section 5.4).

  • B. Constructing, remodeling, or decorating the premises.

We will provide you with a set of our standard building plans and specifications and/or standard recommended floor plans, and our specifications for required decor (Section 5.4).

  • C. Hiring and training employees.

We will provide you with our suggested staffing levels (Section 5.2), suggested guidelines for hiring employees (Section 5.2), operational instructions in the Manual which you can use as part of training new employees (Section 5.3), and our initial training program described below.

Our opening support (as described below) includes assisting you in training employees.

All hiring decisions and conditions of employment are your sole responsibility.

  • D. Necessary equipment, signs, fixtures, opening inventory, and supplies. We will provide you a list of our specifications and approved suppliers for equipment, signs, fixtures, opening inventory, and supplies necessary to open your business. (Section 5.4) We do not provide

these items directly; we only provide the names of approved suppliers. We do not deliver or install these items.

  • E. Operating Manual. We will give you access to our Operating Manual (Section 5.1).
  • F. Initial Training Program. We will conduct our initial training program. (Section 5.4). The current initial training program is described below.
  • G. Market introduction plan. We will advise you regarding the planning and execution of your market introduction plan. (Section 5.4).
  • H. On-site opening support. We will have a representative provide on-site support for at least 7 days in connection with your business opening. (Section 5.4).

Length of Time to Open

The typical length of time between signing the franchise agreement and the opening of your business is 6-8 months. Factors that may affect the time period include your ability to obtain a lease, obtain financing, develop your location, obtain business permits and licenses, and hire employees.

Market introduction plan. You must develop a market introduction plan and obtain our approval of the plan at least 30 days before the projected opening date of your business.

Point of Sale and Computer Systems

We require you to buy (or lease) and use a point-of-sale system and computer system as follows:

Clover POS

Two Terminals for POS

QuickBooks

Email Addresses

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, Crab N Spice has several obligations to fulfill before a franchisee opens their business. Crab N Spice will review and advise franchisees regarding potential locations that are submitted to them. If a franchisee signs a Multi-Unit Development Agreement, Crab N Spice will approve the location of future sites and territories for those sites, applying their then-current standards for sites and territories. Crab N Spice will provide a set of standard building plans and specifications, or standard recommended floor plans, along with specifications for required decor.

Crab N Spice will also provide suggested staffing levels, guidelines for hiring employees, operational instructions in the Manual, and their initial training program. Their opening support includes assisting in training employees. Additionally, Crab N Spice will provide a list of specifications and approved suppliers for necessary equipment, signs, fixtures, opening inventory, and supplies. Franchisees will also receive access to the Operating Manual, advice regarding the planning and execution of their market introduction plan, and on-site support for at least 7 days in connection with the business opening.

Furthermore, Crab N Spice requires franchisees to buy (or lease) and use a specific point-of-sale system and computer system, including Clover POS, two terminals for POS, QuickBooks, and email addresses. Franchisees must also have a basic computer/laptop with specific capabilities, including high-speed internet access, Windows operating system software, and Microsoft Office software. The franchisee must also develop a market introduction plan and obtain approval of the plan at least 30 days before the projected opening date of their business. The typical length of time between signing the franchise agreement and the opening of the business is 6-8 months.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.