The Boiling Crab Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$1,063,500 - $3,793,500
Franchise Fee
$30,000
Min Cash Required
$103,500
Total US Locations
24
Business Summary
The Boiling Crab restaurants are casual dining establishments designed to resemble a traditional Louisiana seafood boil experience. They specialize in seafood and fish entrees prepared Cajun-style, served with various proprietary finishing sauces and complementary side dishes, along with beer, wine, and fountain drinks. The Boiling Crab offers both single-unit franchises and area development rights for entrepreneurs interested in opening and operating one or more of these restaurants.
Corporate History
The Boiling Crab concept was originated in 2004 by Dada Ngo and Sinh Nguyen, who opened the first Boiling Crab restaurant in Garden Grove, California. Their predecessor company, Sinhdarella, Inc., was organized in 2006. Boiling Crab Franchise Co., LLC was formed on January 16, 2013, specifically to manage and administer The Boiling Crab franchise program. As of the FDD issuance, the company and its affiliates own and operate several Boiling Crab restaurants, in addition to franchised locations.
Financial Overview
Investment Range
$1,063,500 - $3,793,500
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$39,500
Minimum Cash Required
$103,500
Royalty %
5%
Marketing %
0.5%
Equipment Costs (Low)
$750,000
Equipment Costs (High)
$2,400,000
Working Capital
$276,750
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Boiling Crab Franchise Co., LLC appears to be in sound financial health. For the year ended December 31, 2023, the company reported a net income of $2,631,962, following a net income of $2,321,864 in 2022. The company also maintains a positive working capital position, with current assets exceeding current liabilities. While a note mentions the waiver of royalties and marketing fees for one international franchisee in response to the COVID-19 pandemic and extended development deadlines, the overall financial statements indicate continued profitability and liquidity for Boiling Crab Franchise Co., LLC.
Financing Details
Boiling Crab Franchise Co., LLC does not offer any direct or indirect financing options to its franchisees. Additionally, the franchisor does not guarantee any notes, leases, or other obligations to banks or landlords on behalf of franchisees.
Performance Metrics
Total US Locations
24
Franchised Units
11
Corporate Units
13
Avg Square Footage
6,250
Franchising Since
2013
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Boiling Crab Franchise Co., LLC has no litigation that is required to be disclosed in this Franchise Disclosure Document.
Bankruptcy History
Boiling Crab Franchise Co., LLC has no bankruptcy history that is required to be disclosed in this Franchise Disclosure Document.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise, Boiling Crab Franchise Co., LLC franchisees must meet several conditions. Their right to renew depends on whether the franchisor is still offering new Boiling Crab franchises in the United States when they give notice. They must give written notice between 9 and 12 months before their current term ends, pay a renewal fee equal to 20% of the then-current Initial Franchise Fee for a new franchise, and be in good standing without any defaults. Franchisees must also sign the franchisor's then-current franchise agreement, which may have materially different terms, satisfy current design and appearance standards for the restaurant, complete any required training, and sign a general release. Additionally, they need to extend their lease or relocate to a new approved location, with the landlord signing a new Addendum to Lease.
Training & Support Program
Franchisor Assistance
Before a Boiling Crab restaurant opens, Boiling Crab Franchise Co., LLC helps with site selection criteria, providing prototype plans for design and layout, and approving construction drawings. They offer an initial training program with Owner Orientation, Certified Manager training, and New Restaurant Opening modules. They also provide specifications for equipment, supplies, and designated suppliers. After opening, Boiling Crab Franchise Co., LLC offers ongoing consultation and advice for administrative and operating issues, additional on-site assistance and training upon request (for a fee), and periodic advanced and refresher training programs. They administer a Marketing Fund for system-wide advertising, review local advertising materials, maintain a brand website with franchisee listings, and plan to implement a mystery shopper program for performance feedback. They may also form a franchisee advisory council to gather input.
Initial Training Hours
242
Training Location
Southern California
Ongoing Support
After a Boiling Crab restaurant opens, Boiling Crab Franchise Co., LLC provides continuous support through regular consultations and advice on administrative and operating issues, which may be delivered via a secure Intranet, telephone, email, or in-person. They offer additional on-site training and assistance upon request (for which franchisees pay a fee and travel expenses). Periodic advanced and refresher training sessions are offered, and franchisees may be required to attend up to 3 days of additional training every 12 months. The franchisor may also conduct annual franchisee business meetings (with a potential registration fee). They regularly revise the Confidential Manual, review requests for approval of alternative suppliers, conduct periodic site inspections, and administer a Marketing Fund and gift card program. A mystery shopper program is planned to provide operational feedback, and the franchisor intends to implement a franchisee advisory council.
Franchise Requirements
Ideal Candidate Profile
Boiling Crab Franchise Co., LLC emphasizes that prospective franchisees should have previous retail food service or restaurant experience. Candidates are expected to devote sufficient time and effort to their development obligations. While owners are not strictly required to personally manage operations full-time or perform Certified Manager duties, they must ensure the restaurant is under the direct, full-time supervision of a qualified Certified Manager. Franchisees must demonstrate the necessary financial resources, good character, business experience, and creditworthiness through a comprehensive application process.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
protected
Territory Size Requirements
For single-unit franchises, Boiling Crab Franchise Co., LLC assigns a one-mile 'Protected Area' around the Approved Location, defined by roads or other geographic markers. For area developers, the Development Territory size depends on regional demographic characteristics, development potential, and the agreed-upon Development Quota.
Staffing Notes
Boiling Crab Franchise Co., LLC requires that every franchised restaurant operates under the direct, full-time supervision of at least one Certified Manager at all times. They recommend employing at least two full-time Certified Managers to ensure continuous coverage. Franchisees are responsible for hiring a sufficient number of competent employees and independent contractors, and ensuring they receive appropriate training according to the BC System standards. All customer service staff must be sufficiently literate and fluent in English, maintain a neat appearance, and wear designated uniforms purchased from an approved vendor. While the franchisee is responsible for all hiring, firing, and employment policies, they must ensure compliance with all operational and appearance standards set by the franchisor.