Is purchasing seasoning from Crab N Spice a requirement for franchisees?
Crab_N_Spice Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 8: RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES]
- D. Food Suppliers. You will purchase all of your food products and supplies from our approved suppliers.
- E. Proprietary Products. Crab N Spice Seasoning and Lemon Garlic Seasoning and branded apparel will be purchased from us directly. We are the only approved supplier for these products.
Us or our Affiliates as Supplier
We will be the supplier of seasonings that you must purchase. Outside of this, you will not purchase any products or services from us or our Affiliates.
Source: Item 5 — INITIAL FEES (FDD page 11)
What This Means (2024 FDD)
According to Crab N Spice's 2024 Franchise Disclosure Document, franchisees are required to purchase Crab N Spice Seasoning and Lemon Garlic Seasoning directly from Crab N Spice. The document specifies that Crab N Spice is the only approved supplier for these proprietary products. This requirement ensures consistency in taste and quality across all Crab N Spice franchise locations.
This restriction on sourcing products means that franchisees cannot seek alternative suppliers for these specific seasonings without written approval from Crab N Spice. While franchisees can request approval for other suppliers, the franchisor's criteria for approval are not disclosed. Crab N Spice will notify the franchisee of approval or disapproval within 30 days of the request.
Crab N Spice also has the right to modify existing specifications and standards at any time by revising their manual or issuing new written directives. This allows Crab N Spice to maintain control over the brand's standards and adapt to changing market conditions, but it also means that franchisees must stay informed of any changes that may affect their operations and costs.