About Crafty Crab Franchise
Crafty Crab is a seafood restaurant franchise offering opportunities since 2023.
Each location serves Cajun style boiled seafood including crab, shrimp, crawfish, and lobster, along with traditional sides.
Guests enjoy a hands on, casual dining experience where meals are served in bags and eaten with their hands, creating a fun, social atmosphere.
Crafty Crab Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 | One-time payment upon signing |
| Royalty Fee | 3% of Gross Revenues of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 1.5% of Gross Revenues (Currently 1%) | National brand fund |
| Total Investment Range | $952,800 – $1,831,399 | Includes build-out, inventory, working capital |
The investment range of $953K–$1.8M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (3% of Gross Revenues) and marketing fee (Up to 1.5% of Gross Revenues (Currently 1%)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $40,000 | $40,000 |
| Training Fee | $10,000 | $10,000 |
| Training expenses | $1,000 | $10,000 |
| Rental Costs | $120,000 | $288,000 |
| Construction, remodeling and leasehold improvements | $500,000 | $1,000,000 |
| Equipment, supplies, décor, fixtures and furnishings | $142,228 | $222,056 |
| Computer and Point of Sale System | $4,000 | $7,000 |
| Inventory to begin operating (including employee uniforms) | $40,072 | $54,843 |
| Security deposits, utility deposits, business licenses, and other prepaid expenses | $5,000 | $30,000 |
| Organizational expense | $1,000 | $2,000 |
| Professional Fees | $1,000 | $5,000 |
| Signs | $5,000 | $10,000 |
| Insurance | $15,000 | $45,000 |
| Grand Opening advertising | $5,000 | $5,000 |
| Permits and Licenses | $3,500 | $7,500 |
| Additional funds (initial period – 3 months) | $60,000 | $95,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Greater of: (i) $15,000; or (ii) the actual amount of our legal, accounting and other expenses |
| Renewal Fee | 50% of the then-current Initial Franchise Fee |
| Technology Fee | When instituted: Up to 1% of Gross Revenues |
| Audit Fee | The amount of the audit expenses is unknown and may vary depending upon factors such as the auditor selected. Franchisee pays if understatement is 2% or more. |
| Required Minimum Expenditure for Local Advertising | $5,000 one month before scheduled opening; then 1% of Gross Revenues Monthly |
| Advertising Cooperative | When cooperative formed: 1% of Gross Revenues. Established by cooperative |
| Proprietary and/or Trademarked Products | $18,708 - $29,268 per month |
| Employee Uniforms | $25 per front of house employee (full uniform), $35 per back of house employee (full uniform) |
| Merchandise Cost | As invoiced by us or 3rd party vendor |
| Software Costs, Software Support Services | If we or our designee develop proprietary software, no initial charge for program. You pay for updates. |
| Testing fee | Actual costs we incur, plus an additional 25% of such costs as an administrative and service fee. |
| Initial Training | All living and transportation expenses of all trainees. Additional and subsequent trainee charge: $2,500 per person. |
| On-Site Training and Assistance | $300 per trainer per day |
| On-Going Training | Expenses only. |
| Insurance Reimbursement | If we pay for your insurance: Estimated annual premium - $30,000 - $60,000. Plus, our out-of-pocket costs if you fail to maintain the required insurance and we choose to pay for it on your behalf. |
| Relocation | Actual costs |
| Taxes | As assessed on goods and services we provide to you. |
| Advances | Any amounts we advance to third parties for you (if any) |
| Late Charge – Monthly Gross Revenues Report | $150 per late report per month |
| Late Charge – Financial Reports | $50 per month |
| Interest | Lesser of: (i) the maximum commercial contract interest rate permitted by law; or (ii) the rate of 18% per annum, plus any applicable bank charges. |
| Securities offering review fee | $10,000 or such greater amount as necessary to reimburse us for our reasonable costs and expenses in reviewing your proposed securities offering |
| Management Fee on Death or Disability | Greater of (a) two times the salary paid to individual(s) we assign to operate Business, or (b) 10% of Business's weekly Gross Revenue. |
| Indemnification of Us | You indemnify us from certain losses and expenses – see Section 8.10 of the Franchise Agreement. |
| Attorneys' and Experts’ Fees, Court Costs | The amount of these fees and costs are unknown and may vary depending upon factors such as the attorneys and experts selected and the court costs. |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 120 hours |
| Classroom Training | 8 |
| On-the-Job Training | 112 |
| Training Location | Crafty Crab Corporate Office & Corporate owned Restaurant in Green Cove Springs, Florida |
| Additional Training | The franchisor may develop additional mandatory training programs and conduct annual conferences, conventions, or training sessions, which the franchisee and Managing Owner must attend at their own expense. Additional or replacement trainees for the Initial Training Program incur a $2,500 per person charge plus expenses. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | Five (5) mile radius in suburban areas; or the lesser of five (5) city blocks or a 1-mile radius in urban areas. |
| Description | Franchisees receive a defined geographic territory, consisting of a 5-mile radius around the Restaurant Location in suburban areas, or the lesser of 5 city blocks or a 1-mile radius in urban areas. Within this territory, the franchisor and its affiliates will not operate a company-owned Crafty Crab Business or grant a franchise for a similar or competitive business under the Proprietary Marks. However, the franchisor reserves the right to operate outside the territory, and through alternative distribution channels (e.g., internet, mail order, food trucks) or non-traditional locations (e.g., resorts, schools, airports) even within the territory, and to sell to national, regional, and institutional accounts. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Two (2) consecutive 5-year terms |
| Renewal Fee | 50% of the then-current Initial Franchise Fee for similar franchised territories, not to exceed the original Initial Franchise Fee for the first successor term. |
| Renewal Conditions | To renew, the franchisee must provide written notice 6-9 months before expiration, comply with the Franchise Agreement and Brand Standards throughout the initial term, satisfy all monetary obligations, renew their lease or secure an approved new location, sign a general release, attend any required training, and refurbish/remodel the restaurant to current standards. |
| Transfer Fee | $15,000 |
| Transfer Conditions | Transfers require franchisor consent, which will not be unreasonably withheld if conditions are met. Conditions include the proposed assignee applying for acceptance, demonstrating skills and financial qualifications, attending training, obtaining landlord consent, curing existing defaults, signing a new franchise agreement (for the balance of the term), obtaining necessary permits, remaining liable for prior obligations, signing guarantees and a general release, correcting restaurant deficiencies, upgrading the restaurant to current standards, paying the transfer fee, and not having an interest in a competitive business. |
| Termination for Cause | The franchisor may terminate the agreement for various defaults, some without an opportunity to cure (e.g., failure to open on time, abandonment, material misrepresentation, felony conviction, unauthorized transfer, concealing revenues, refusal to allow audit, repeated defaults, jeopardizing public health/safety). Other defaults are curable within 30 days (e.g., failure to submit reports, sell unauthorized products, maintain trade accounts), or 5 days for monetary defaults. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the initial and any successor term, the franchisee cannot be involved in any competing business anywhere in the U.S. Following termination, expiration, or assignment, the franchisee cannot be involved in a competing business for two (2) years within their former Territory, within 10 miles of its perimeter, or within 10 miles of the perimeter of (or within) any other Crafty Crab Business Territory. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee must personally supervise and participate in the day-to-day operation of the business, devoting necessary time and best efforts. An individual franchisee must serve as the Managing Owner, or an entity franchisee must designate a Managing Owner with at least a 20% ownership interest and complete decision-making authority. An Operating Manager, who may be the Managing Owner, must also be designated to exercise on-premises supervision and direct operation. All Managing Owners and Operating Managers must complete the Initial Training Program. |
| Required Suppliers | You must purchase proprietary and trademarked products (proprietary seasoning, trademarked packaging, smallwares, uniforms, interior logos, and table sets) from the franchisor or its affiliate, who are the only approved suppliers for these items. You must also purchase any proprietary computer software programs developed by the franchisor in the future, and the required insurance. |
| Supply Restrictions | Franchisees are restricted to purchasing proprietary and trademarked products from the franchisor or its affiliate. For non-proprietary items, franchisees must purchase from suppliers designated or approved by the franchisor, or from suppliers whose products meet the franchisor's specifications. The franchisor does not maintain written criteria for approving suppliers, but requires a written request, demonstration of meeting specifications, financial soundness, and may test products at the franchisee's expense. |
| Franchisor Revenue from Suppliers | The franchisor and/or its affiliates may derive revenue (promotional allowances, volume discounts, commissions, rebates, etc.) from designated, approved, or recommended suppliers. Any products or services sold directly by the franchisor or its affiliates may be priced to exceed their costs. While no revenues from sales of proprietary products or software updates to franchisees have been received yet, the franchisor anticipates receiving such revenues in the future. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | The franchisor does not offer direct or indirect financing, nor does it guarantee any franchisee's notes, leases, or obligations. |
Crafty Crab Franchise Earnings — Item 19
Crafty Crab does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Crafty Crab Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Crafty Crab System Growth
Crafty Crab currently operates 0 franchised locations and 65 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 26 | 0 | 39 |
| 2021 | 20 | 0 | 59 |
| 2022 | 8 | 2 | 65 |
Transfers: 0 | Closures: 2
Crafty Crab Franchise — FAQ
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