Under what circumstances does Crab N Spice charge a fee for in-person support?
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. |
Source: Item 6 — OTHER FEES (FDD pages 11–14)
What This Means (2024 FDD)
According to Crab N Spice's 2024 Franchise Disclosure Document, in-person support fees may be charged when a franchisee requests assistance from Crab N Spice. The fee covers the cost of providing that support, including a daily rate plus any out-of-pocket expenses incurred by Crab N Spice employees. Currently, the daily rate for in-person support is $500 per day. These expenses can include travel, lodging, and meals for the employees providing the support at the franchisee's location.
This policy means that franchisees should carefully consider whether to request in-person support, as it can result in significant costs beyond the standard franchise fees. Franchisees should first attempt to resolve issues through available training materials, manuals, or remote support options before requesting on-site assistance. Understanding the circumstances that warrant in-person support and exploring alternative solutions can help franchisees manage their expenses and maintain profitability.
It is important to note that if a franchisee uses unauthorized advertising in violation of the Franchise Agreement, any in-person support fees paid will be directed to the Marketing Fund. Additionally, franchisees are responsible for covering the costs of additional food safety audits if they fail an initial audit. These fees are paid directly to the third-party auditor and are non-refundable under any circumstances. Crab N Spice also retains the right to take action to resolve customer complaints about a franchisee's business and may require the franchisee to reimburse them for any expenses incurred in doing so.