FranchiseVerdict
Crab N Spice logo
FV-00651·MODERATEExcellent81

Crab N Spice

Food & Beverage - Full ServiceFranchising since 2019Website
Investment
$396K – $892K
54th pct Full Service
Avg revenue
57th pct Full Service
Royalty
6.0%
54th pct Full Service
Units
9
39th pct Full Service
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $396K – $892K including a $20K franchise fee, 6.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated MODERATE with a risk score of 65/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
  • No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.

Item 1 · who you're contracting with

The Franchisor

Legal entity
Crab N Spice Group
Incorporated in
California
HQ
3920 E Patrick Ln., Ste. 105, Las Vegas, NV 89120
Auditor
Naper CPA Group
Audited financials
Franchisor revenue
$213K
vs $122K prior year

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one Crab N Spice unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $396K–$892K
Working capital
$
FDD reports $35K–$70K

Unlevered ROIC · per unit

17%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$120K
EBITDA margin
16.0%
Total invested
$697K
Payback
70 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Franchisees operate fast-casual or full-service crab and seafood restaurants featuring spiced preparation methods. Day-to-day operations include food sourcing, kitchen management, front-of-house service, staff training, and menu execution across a protected territory. Revenue depends heavily on local market demand for premium seafood and ability to maintain consistent flavor/quality standards.

CEO
Jerrico Reyes
Founded
2018
FDD year
2025
States available
2

Item 7 · what it costs

The Vitals

Total investment
$396K – $892K
All-in to open one unit
Liquid capital
$35K – $70K
Cash you must have on hand
Franchise fee
$20K
Royalty
6.0%
percentage of gross sales · typical 6–8%
Ad fund
1.0%
typical 3–5%
Total fee load
7.0%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
9
Opened
3
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
2
Corporate units in the system
% franchised
78%
vs corporate-owned
Net growth (yr3)
+75.0%
Net unit change last year
3-yr CAGR
+75.0%
Compounded over last 3 years
2023
7+3
Franchised units
2024
4
Franchised units
2025
4
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 14 states with active franchisees

The Territory Map

Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 14 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

Total loans
2
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

65
Risk · 0-100
MODERATE65 / 100

Early-stage seafood franchise with critical financial opacity, questionable franchisor stability, and insufficient unit maturity to validate franchise model economics.

Score breakdown · what drove the 65 / 100 rating

  1. 01MINORNo Item 19 financial disclosure (average revenue and net income not provided) — impossible to validate ROI claims or profitability benchmarks
  2. 02HIGHGoing Concern status is False, indicating potential financial instability or structural uncertainty within the franchisor
  3. 03MINORExtremely wide investment range ($396K–$892K, 125% spread) suggests inconsistent build-out costs, poor cost controls, or variable location requirements
  4. 04MINOROnly 9 total units with 75% YoY growth is modest absolute scale; high growth rate may indicate instability rather than traction in early/fragile stage
  5. 05MED6% royalty on undisclosed sales makes it difficult to model break-even; true ROI cannot be calculated without Item 19
  6. 06HIGHNo litigation disclosed is neutral, but absence of financial data prevents assessment of franchisor viability

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Radius
Protected territory
Yes
Initial term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
California

Item 11

Training & Operations

Classroom training
40 hrs
On-the-job training
30 hrs
POS system
Clover POS
Operating tech stack

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

14 numbers

Locked
(517) 373-••••
MI
(808) 586-••••
HI
(651) 539-••••
MN

One-time purchase · CSV download · Validation questions included

FDD download

Crab N Spice · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above