Who must be under the on-site supervision of the Crab N Spice business at all times?
Crab_N_Spice Franchise · 2024 FDDAnswer from 2024 FDD Document
- 2.4 Principal Executive. Franchisee agrees that the person designated as the "Principal Executive" on the Summary Page is the executive primarily responsible for the Business and has decision-making authority on behalf of Franchisee.
The Principal Executive must have at least 10% ownership interest in Franchisee.
The Principal Executive does not have to serve as a day-today general manager of the Business, but the Principal Executive must devote substantial time and attention to the Business.
If the Principal Executive dies, becomes incapacitated, transfers his/her interest in Franchisee, or otherwise ceases to be the executive primarily responsible for the Business, Franchisee shall promptly designate a new Principal Executive, subject to CNS Franchising's reasonable approval.
Source: Item 22 — CONTRACTS (FDD pages 50–51)
What This Means (2024 FDD)
According to the 2024 Crab N Spice Franchise Disclosure Document, the Principal Executive does not have to serve as a day-to-day general manager. However, the Principal Executive must devote substantial time and attention to the business.
The Principal Executive is the person designated on the Summary Page of the franchise agreement who is primarily responsible for the Crab N Spice business and possesses the authority to make decisions on behalf of the franchisee. This individual must maintain at least a 10% ownership interest in the franchise.
If the Principal Executive dies, becomes incapacitated, transfers their interest, or is no longer the executive primarily responsible, the franchisee must promptly designate a new Principal Executive, subject to Crab N Spice's approval. This ensures that there is always a responsible party overseeing the franchise operations, even if they are not present on a daily basis.