Angry Crab Shack Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$411,800 - $1,203,800
Franchise Fee
$40,000
Total US Locations
21
Business Summary
Angry Crab Shack operates southern-style seafood boil restaurants, offering a variety of seafood and Cajun-style dishes, along with other authorized food and beverages. These establishments provide a lively, casual, and friendly dining environment, with options for both eat-in and take-out service. Angry Crab Shack locations are required to offer a full bar, including beer, wine, and spirits, as designated or approved by the franchisor.
Corporate History
Angry Crab Franchise, LLC was formed on September 29, 2015, in Arizona, specifically to offer franchises for southern-style seafood boil restaurants under the Angry Crab Shack name across the United States. The franchisor has never offered franchises in any other industry. Its affiliate, Angry Crab Shack Corporation, was formed in August 2013 and operates the original Angry Crab Shack in Mesa, Arizona, and is the owner of the Marks. Other affiliates also operate Angry Crab Shack restaurants in various Arizona locations (Phoenix, Mesa, Peoria, Goodyear) and Atlanta, Georgia. The company focuses on expanding its seafood boil restaurant concept through franchising.
Financial Overview
Investment Range
$411,800 - $1,203,800
Franchise Fee (Low)
$40,000
Franchise Fee (High)
$50,000
Royalty %
5%
Marketing %
1%
Equipment Costs (Low)
$235,000
Equipment Costs (High)
$766,000
Working Capital
$50,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Angry Crab Franchise, LLC's financial statements show some positive trends, but the franchisor itself highlights concerns about its financial ability to provide services and support. For the year ending December 31, 2024, Angry Crab Franchise, LLC reported a positive net income of $204,567 and generated a healthy positive cash flow of $216,513 from its operations. The company also maintained positive working capital of $260,694, meaning it has enough short-term assets to cover its short-term debts. While Angry Crab Franchise, LLC has a members' deficit (negative equity) of $70,347 in 2024, this is a significant improvement from the $274,914 deficit in 2023. Despite these improvements, potential franchisees should be aware that the franchisor has explicitly stated that its financial condition "calls into question" its ability to provide services and support.
Financing Details
Angry Crab Shack does not offer any direct or indirect financing to its franchisees. This means that Angry Crab Shack will not provide loans or guarantee any notes, leases, or other financial obligations for franchisees. Franchisees will need to secure all necessary funding from independent third-party sources.
Performance Metrics
Total US Locations
21
Franchised Units
15
Corporate Units
6
Avg Square Footage
6,250
Franchising Since
2015
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
2
Litigation Summary
Angry Crab Shack has disclosed two litigation cases in its history, both of which have been settled and are not ongoing. The first case, filed in 2019, involved Angry Crab Shack and its affiliate suing a Tucson, Arizona franchisee and its owners for various breaches, including breach of franchise agreement, sublease, and a loan agreement, as well as operational failures. This dispute was settled in November 2019, leading to the termination of the franchisee's agreements for two locations, the forgiveness of a loan, and the sale of an owner's interest to Angry Crab Shack's CEO. The second case, filed in 2015 by an Angry Crab Shack affiliate, was a trademark infringement lawsuit against 'Angry Crab Corporation' in Illinois, which was operating a restaurant with a similar name and concept. This case was settled in September 2016, with the Illinois defendant acknowledging Angry Crab Shack's exclusive trademark rights throughout the U.S. and agreeing to operate only within a defined geographic area in Chicago with specific advertising restrictions. Angry Crab Shack states that no other litigation is required to be disclosed beyond these two resolved cases.
Bankruptcy History
Angry Crab Shack has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
Angry Crab Shack franchisees who wish to renew their franchise agreement must provide written notice to the franchisor between six and eighteen months before the current term ends. At the time of each renewal, Angry Crab Shack franchisees must remodel and update their franchised business to meet the franchisor's then-current standards, at their own expense. They are also required to sign the franchisor's current form of franchise agreement (though the renewal term will be five years), which may include materially different terms and conditions from their original agreement, and execute a general release of the franchisor and its affiliates. Additionally, franchisees must attend any requested training programs or refresher courses at their own expense.
Training & Support Program
Franchisor Assistance
Angry Crab Shack provides a range of assistance to its franchisees. Before opening, the franchisor offers counseling and criteria for site selection, approves the chosen location, and reviews lease or purchase agreements, requiring the use of approved third-party real estate brokers, architects, project management firms, and contractors for design and construction. Angry Crab Shack also assists in identifying and procuring necessary furnishings, fixtures, equipment, signs, initial inventory, and supplies, and provides all required operating standards and a list of approved suppliers. Franchisees receive comprehensive initial training, known as the 'Training System', for up to three individuals (typically the franchisee/principal, General Manager, and Kitchen Manager) at its facilities in Mesa and metropolitan Phoenix, Arizona. This training covers all operational aspects from food preparation and bar service to management, POS systems, HR, marketing, and inventory control. Angry Crab Shack also helps coordinate a grand opening advertising program. Once open, Angry Crab Shack maintains an ongoing advisory relationship, consulting with franchisees on marketing, merchandising, and general business operations. The franchisor provides updated operating standards and conducts periodic inspections and quality checks. An Angry Crab Shack representative provides up to five days of on-site assistance during the grand opening week (at the franchisor's expense; additional days incur a fee). The franchisor may suggest or mandate pricing for products and services. Angry Crab Shack manages a National Advertising Fund, to which franchisees contribute 1% of their Net Sales (can increase to 2%), used for system-wide marketing, public relations, and media campaigns. Franchisees are also required to spend not less than 2% of their Net Sales (up to $3,000,000) on local advertising, plus an additional $5,000 for their grand opening, with all advertising materials requiring prior approval. Franchisees must utilize a designated point-of-sale (POS) system, which allows the franchisor daily remote access to sales and operational data, and must maintain an active email account for electronic communication. Mandatory refresher training programs, conferences, and seminars are held periodically, and franchisees must attend at their own expense.
Initial Training Hours
240
Training Location
Mesa, Arizona (classroom) and metropolitan Phoenix, Arizona area (in-store)
Ongoing Support
After opening, Angry Crab Shack franchisees receive continuous advisory support, including consultation on marketing, merchandising, and general business operations, and guidance on operating standards. The franchisor conducts periodic inspections and quality checks to ensure consistent standards across the system. An Angry Crab Shack representative provides up to five days of on-site assistance during the grand opening week (at no cost to the franchisee, with additional days incurring a fee). The franchisor may also establish suggested or mandated minimum/maximum pricing schedules. Angry Crab Shack manages a National Advertising Fund, which franchisees contribute to (currently 1% of Net Sales, up to 2%), for brand promotion, public relations, and media campaigns. Franchisees are required to spend at least 2% of their Net Sales (up to $3,000,000) on local advertising, plus $5,000 for their grand opening, with all advertising materials subject to franchisor approval. Franchisees must use a designated point-of-sale (POS) system that allows the franchisor daily remote access to sales data for system-wide monitoring and business management. Mandatory refresher training programs, conferences, and seminars are held periodically, and franchisees must attend at their own expense.
Franchise Requirements
Ideal Candidate Profile
Angry Crab Shack is seeking franchisees who are not merely passive investors, but individuals or principals of entities who plan to actively participate in the direct operation and daily affairs of their restaurants. This includes providing "on-premises" supervision and having strong management skills, experience, and business acumen. Financial strength is also a key factor, particularly for those looking to open multiple units under a Development Agreement.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
hands-on
Territory Type
limited
Territory Size Requirements
Angry Crab Shack franchise territories are generally defined by zip codes and designed to encompass a combined total population of approximately 200,000 people. For development agreements, the development area will also consist of zip codes, with each planned Angry Crab Shack location within that area designed to serve approximately 200,000 people. For example, a development agreement for three Angry Crab Shacks would cover zip codes totaling about 600,000 people. The Site Selection Area, used before a specific location is approved, is non-exclusive and determined on a case-by-case basis considering economic, demographic, and geographical information such as population density.
Staffing Notes
Angry Crab Shack locations require on-premises supervision by either the franchisee, a principal of the franchisee's business, or a General Manager who has successfully completed the franchisor's Training System. Each Angry Crab Shack must employ at least one full-time General Manager and one full-time Kitchen Manager. These two managers must meet the franchisor's standards, criteria, and training requirements, and they are expected to dedicate their entire time during normal business hours to the management and operation of the Angry Crab Shack. All employees must be trained in Angry Crab Shack procedures, be able to read and understand written materials, and communicate effectively in English with both employees and customers. Additionally, all personnel are required to wear uniforms approved by Angry Crab Shack.