Crafty Crab Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$892,800 - $1,812,399
Franchise Fee
$20,000
Min Cash Required
$60,000
Total US Locations
67
Business Summary
Crafty Crab Franchising LLC operates fast-casual restaurants known as Crafty Crab Restaurants, specializing in Cajun-style seafood and other food and beverage products. These restaurants offer dining options for both on-premises and off-premises consumption, including delivery and take-out services.
Corporate History
Crafty Crab Franchising LLC was organized as a Florida limited liability company in April 2023. While the franchisor itself had not conducted a Crafty Crab Business as of the FDD issuance date (May 15, 2024), its affiliates have been operating similar businesses since April 2016. Crafty Crab Franchising LLC began offering franchises in 2024, utilizing a license from its affiliate, CC Seafood Group, LLC, to use the Crafty Crab System and trademarks. Another affiliate, Jaxpa Distribution LLC, also formed in June 2023, is involved in selling proprietary products to franchisees. Crafty Crab Franchising LLC has not previously offered or sold franchises.
Financial Overview
Investment Range
$892,800 - $1,812,399
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$40,000
Minimum Cash Required
$60,000
Royalty %
3%
Marketing %
1%
Equipment Costs (Low)
$642,228
Equipment Costs (High)
$1,222,056
Working Capital
$77,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Crafty Crab Franchising LLC has a limited operating history, having been organized in April 2023. The company incurred a net loss of $115,095 for the fiscal year ended December 31, 2023, and an additional net loss of $27,877 for the period of January 1, 2024, through March 31, 2024. As of March 2024, its total equity was $67,997. The New York addendum specifically highlights that the franchisor's financial condition calls into question its ability to provide services and support to franchisees, indicating potential concerns about its financial stability and ability to support the franchise system.
Financing Details
Crafty Crab Franchising LLC does not offer any direct or indirect financing to its franchisees. Additionally, it does not guarantee any franchisee's notes, leases, or other financial obligations.
Performance Metrics
Total US Locations
67
Franchised Units
0
Corporate Units
67
Avg Square Footage
7,500
Franchising Since
2024
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Crafty Crab Franchising LLC has no litigation to report, as no litigation is required to be disclosed in Item 3 of the FDD.
Bankruptcy History
Crafty Crab Franchising LLC has no bankruptcy history to report, as no bankruptcy is required to be disclosed in Item 4 of the FDD.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their Crafty Crab franchise agreement, franchisees must notify Crafty Crab Franchising LLC in writing 6 to 9 months before their initial term expires. They must have consistently complied with the franchise agreement and brand standards, and all monetary obligations to the franchisor, its affiliates, landlord, and suppliers must be current. Franchisees are required to show they can renew their lease or secure a new approved location without business interruption. They must also sign a general release of claims against the franchisor (excluding future claims under the successor agreement) and pay a successor franchise fee equal to 50% of the then-current initial franchise fee for similar territories (though the first renewal fee won't exceed the original initial franchise fee). Additionally, the franchisee or their Managing Owner must attend and successfully complete any reasonably required training, and the restaurant facility must be refurbished or remodeled to meet current brand standards.
Training & Support Program
Franchisor Assistance
Crafty Crab Franchising LLC provides various forms of assistance to its franchisees. Before opening, the franchisor designates the territory, helps approve the restaurant site and lease, and reviews final construction plans. Franchisees receive a copy of the confidential operating manual (Brand Standards) and are provided with specifications for required products and services, including proprietary software if developed. Crafty Crab Franchising LLC also offers an initial training program for the franchisee's Managing Owner and Operating Manager, typically lasting 120 hours, conducted at the corporate office and a company-owned restaurant in Green Cove Springs, Florida. This training may also be offered via video conferencing. For the first restaurant, the franchisor provides up to one week of on-site pre-opening and opening assistance, with franchisees reimbursing travel, lodging, meals, and wages for representatives. After opening, Crafty Crab Franchising LLC may offer field support services, supervision, and assistance through on-site visits, off-site sessions, and electronic communication, subject to staff availability. Franchisees can communicate with headquarters for consultation. The franchisor also determines the electronic accounting and POS systems to be used and provides required specifications for products and services. Crafty Crab Franchising LLC controls all advertising programs, concepts, materials, and media for the system, and may institute regional advertising cooperatives or manage the system advertising fund, which franchisees contribute to.
Initial Training Hours
120
Training Location
Crafty Crab Corporate Office & Corporate owned Restaurant in Green Cove Springs, Florida
Ongoing Support
After opening their Crafty Crab restaurant, franchisees may receive ongoing field support services, supervision, and assistance through on-site visits, off-site sessions, or electronic communication, subject to the availability of Crafty Crab Franchising LLC's personnel. Franchisees can also contact the corporate headquarters for consultation and guidance on business operations and management. The franchisor may provide standard electronic accounting forms and reports and will continue to approve or disapprove franchisee-proposed advertising, direct mail, identification, and promotional materials. Crafty Crab Franchising LLC also furnishes specifications for required products and services, sells proprietary products, and may continue to engage in pricing activities for restaurant products and services. Additionally, the franchisor provides requirements for the selection, training, and duties of personnel and Operating Managers. Crafty Crab Franchising LLC may conduct additional training programs and annual conferences or conventions, which the franchisee and their Managing Owner are required to attend at their own expense.
Franchise Requirements
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
non-exclusive
Territory Size Requirements
Crafty Crab Franchising LLC grants a geographic area called a 'Territory'. The minimum size of this Territory is defined as either a 5-mile radius around the restaurant location if it's in a suburban area, or the lesser of 5 city blocks or a 1-mile radius around the restaurant location if it's in an urban area.
Staffing Notes
Crafty Crab Franchising LLC requires franchisees to staff their business according to specific criteria for personnel selection, qualifications, hiring, and training as detailed in its Brand Standards. The franchisee must maintain a competent, trained staff in sufficient numbers to efficiently serve customers, ensuring employees adhere to standards for appearance, dress code, and demeanor. At least one Restaurant Manager must be on duty during all operating hours. This manager can be the franchisee's Operating Manager or another trained and supervised individual. To keep management and employees updated, the franchisee must conduct in-house meetings and training sessions using materials provided by the franchisor.