What is the payment arrangement for the additional food safety audit required by Crab N Spice?
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. | |||
| If you fail a food safety audit, we will | |||
| require you to undergo an additional food | |||
| safety audit at your own expense within | |||
| 45 days. You will pay the third party | |||
| auditor directly upon invoicing. |
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 a franchisee fails a food safety audit, Crab N Spice will require them to undergo an additional food safety audit within 45 days, at the franchisee's own expense.
The franchisee is required to pay the third-party auditor directly upon receiving the invoice. This fee is uniformly imposed on all franchisees who fail a food safety audit and is non-refundable under any circumstances.
This means that prospective Crab N Spice franchisees should be aware that maintaining high food safety standards is crucial not only for the brand's reputation but also to avoid incurring additional audit expenses. Failing an audit can lead to an immediate out-of-pocket cost, as the franchisee will be responsible for the auditor's fees. This is a fairly standard practice in the franchise industry, as franchisors typically hold franchisees accountable for maintaining brand standards and operational compliance, including food safety.