Risk Score
Pending analysis
Investment Range
$318,000 - $591,000
Franchise Fee
$20,000
Total US Locations
8
Business Summary
Crab N Spice operates seafood restaurants under the trade name "Crab N Spice". These restaurants offer a variety of seafood menu options to customers, primarily families and people from all demographics, in a highly developed market depending on the area.
Corporate History
Crab N Spice Group was formed as a California corporation on September 7, 2018, and began offering franchises in 2019. However, the brand itself has a longer operational history through its affiliates. Ventura Crab N Spice, LLC started operating a Crab N Spice location in 2015, and Antelope Valley Crab N Spice, Inc. began operating another location in 2017.
Financial Overview
Investment Range
$318,000 - $591,000
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$20,000
Royalty %
6%
Marketing %
1%
Equipment Costs (Low)
$185,000
Equipment Costs (High)
$370,000
Working Capital
$52,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The FDD highlights in its 'Special Risks' section that Crab N Spice's financial condition, as shown in its financial statements, raises questions about its ability to provide franchisees with service and support. The company reported a net loss of $27,731 in 2023 and $4,507 in 2022, with very low cash and cash equivalents ($224 in 2023).
Financing Details
Crab N Spice does not offer any direct or indirect financing to franchisees. It also does not guarantee any franchisee notes, leases, or other obligations.
Performance Metrics
Total US Locations
8
Franchised Units
4
Corporate Units
4
Franchising Since
2019
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Crab N Spice has no litigation to report in Item 3 of its Franchise Disclosure Document. No legal actions or proceedings involving the franchisor, its predecessors, affiliates, or key personnel are required to be disclosed.
Bankruptcy History
Crab N Spice has no bankruptcy history to report in Item 4 of its Franchise Disclosure Document. No bankruptcy information for the franchisor, its affiliates, or key management personnel is required to be disclosed.
Agreement Terms
Initial Term
10 years
Renewal Conditions
Crab N Spice franchisees who wish to renew their agreement must provide advance notice between 90 and 180 days before their current term ends. They must be in full compliance with all contractual obligations to Crab N Spice and third parties, and agree to renovate their business to meet Crab N Spice's then-current standards. Franchisees will also be required to sign Crab N Spice's current standard franchise agreement (which may have materially different terms and fees) and a general release of claims against Crab N Spice and its affiliates.
Training & Support Program
Franchisor Assistance
Crab N Spice assists franchisees with pre-opening obligations by reviewing potential locations, providing standard building plans, specifications, and decor requirements, and supplying lists of approved vendors for necessary equipment and supplies. Franchisees receive suggested staffing levels, hiring guidelines, and access to the Operating Manual. Initial training is provided to the Principal Executive and one manager. Crab N Spice also advises on market introduction plans and offers at least 7 days of on-site opening support. After opening, Crab N Spice provides advice by phone or electronic communication for business improvement and problem resolution, and may charge a fee for in-person support. It also offers recommended pricing and administrative, bookkeeping, accounting, and inventory control procedures. Crab N Spice administers the Marketing Fund and maintains the Crab N Spice brand website.
Initial Training Hours
70
Training Location
Corporate location in Palmdale, CA or the franchisee's location.
Ongoing Support
Crab N Spice provides ongoing advice via telephone or electronic communication to help franchisees improve their business and resolve operational issues, although in-person support may incur an additional fee. It offers recommended administrative, bookkeeping, accounting, and inventory control procedures. Crab N Spice also manages the Marketing Fund and maintains the brand's website, which includes franchisee business information. Franchisees are required to upgrade or update their computer systems as determined by Crab N Spice, with estimated annual costs of $100 to $200 per month for support, plus $20 per month per email address.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Absentee Allowed
Territory Type
exclusive
Territory Size Requirements
Crab N Spice defines territories based on whichever is smaller: an area containing a population of 100,000 people or a 5-mile radius from the franchise location. The exact mapping of each territory is determined by Crab N Spice based on individual market circumstances.
Staffing Notes
Crab N Spice provides franchisees with suggested staffing levels and hiring guidelines, along with operational instructions in its Manual that can be used for training new employees. The franchisor requires that each Crab N Spice business is at all times under the on-site supervision of either the franchisee or a general manager who has successfully completed Crab N Spice's training program.