Angry Crab Shack
Angry Crab Shack offers southern-style seafood boils in a casual setting, known for Cajun-inspired cuisine and full bars. Part of the quick-service restaurant industry, it requires significant investment for franchise operation.
Angry Crab Shack franchise FAQ
How much does it cost to open one — the total initial investment?
The total investment necessary to begin operation of an Angry Crab Shack Development Agreement ranges from $42,500 to $85,000. This includes $40,000 to $80,000 that must be paid to the franchisor or its affiliates [p.1].
What is the initial franchise fee?
The initial franchise fee for your first Angry Crab Shack is $50,000. For each subsequent location, it is generally $45,000, but can be reduced to $40,000 if you are a veteran of the U.S. military (honorably discharged), a current or former firefighter, or police officer [p.10, p.73].
What are the ongoing royalty and advertising fees?
The ongoing royalty and advertising fees are based on net sales during each Calendar Week. These fees are withdrawn by ACH from your bank account on Wednesday of the following week [p.15].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is ten (10) years [p.15]. After the initial term, Franchisee may renew the agreement for consecutive, unlimited five (5) year terms by complying with the renewal requirements, which include paying a renewal fee equivalent to twenty-five percent (25%) of the current initial franchise fee [p.15].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you cannot sell or transfer your franchise without the prior written consent of the Franchisor, which consent will not be unreasonably withheld [p.79]. This includes transfers by operation of law or otherwise, as well as transfers of equity interests in your franchise entity or mergers and consolidations involving your franchise [p.79]. Additionally, a Majority-owned Transfer (where the transferee is majority owned by you or owns a majority interest in your franchise) requires payment of a $2,500 transfer fee but does not entitle the Transferee to attend training at Franchisor's cost [p.81].
On what grounds can the franchisor terminate the agreement?
This isn't specified in the excerpts.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory [p.32]. However, while you are in compliance with the agreements, the franchisor will not operate or license others to operate Angry Crab Shack restaurants within your Franchise Territory [p.62], which generally covers an area with a combined total population of approximately 200,000 people.
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program called the Training System, which includes both classroom and on-the-job training [p.26]. Additionally, the Company offers ongoing operations support as part of the franchise agreement [p.151, p.165]. This support is considered a single performance obligation alongside the right to use trademarks and proprietary information [p.151, p.165].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
Yes, the franchisor shares financial performance information based on sales reports from both company-owned and franchisee-owned Angry Crab Shack restaurants [p.53]. However, this information excludes certain outlets that do not meet the reasonable basis criteria for inclusion [p.47, p.50, p.52, p.53].
What am I restricted to selling, and where must I buy supplies?
You are required to offer and sell only the products specified in the full menu prescribed by the franchisor, which may change at their discretion. You may not add any item to your menu unless it is first approved in writing by the franchisor. Additionally, you must purchase all food products, ingredients, equipment, furniture, fixtures, décor, signs, computer equipment, supplies, and other materials from Approved Suppliers or Designated Suppliers as specified in the Manuals [p.22]. This includes items such as POS systems, beverage equipment, liquor, beer, wine, sound systems, and certain ingredients [p.26].