What is the process for paying for an 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 will directly pay the third-party auditor upon receiving an invoice. This fee is uniformly imposed and is non-refundable under any circumstances.
This means that prospective Crab N Spice franchisees need to be aware that maintaining high food safety standards is critical. Failure to do so will not only result in a failed audit but also necessitate an additional audit at their own cost. The FDD does not specify the exact cost of the audit, but it is the franchisee's responsibility to cover this expense.
It is important to note that the payment is made directly to the third-party auditor, not to Crab N Spice. This arrangement ensures transparency and potentially allows the franchisee to negotiate terms or clarify any discrepancies directly with the auditor. However, the fee is non-refundable, emphasizing the importance of ensuring compliance and passing the audit the first time around. Franchisees should inquire about the typical cost of these audits during their due diligence to better prepare for this potential expense.