1. IS PREVIOUS RESTAURANT EXPERIENCE NECESSARY TO RUN A CRABBY JOE’S?

Previous restaurant experience can be an asset, however, we look mostly at your business experience. Prior management experience, leadership skills, strong interpersonal skills, and a desire to work hard and achieve are the biggest keys to your success in our system.

2. IF IAM THE FRANCHISEE, DO I HAVE TO MANAGE THE RESTAURANT?

Franchisees that are fully committed in terms of time and attention to their operations show the greatest success. We strongly recommend that you or a trusted, motivated person be your store leader.

3. WHAT IS THE ROYALTY FEE ON SALES?

The royalty fee is 5% of sales as defined in the Franchise Agreement and is paid weekly to Obsidian Group Inc.

4. WHAT IS THE FRANCHISE FEE?

The franchise fee is $30,000 paid upon signing of the Franchise Agreement for the ongoing use of the Crabby Joe’s name, trademarks and advertising material.

5. ARE MY FUNDS AND ASSETS (DOLLARS) THE ONLY CRITERIA FOR RECEIVING YOUR FRANCHISE?

No – in some cases you’ll also have friend or family support, both financially and operationally. There are many things we look for in your world towards your being awarded our franchise.

6. AS A FRANCHISEE, WHAT DO I RECEIVE FOR PAYING ROYALTIES?

Franchisees receive detailed confidential system manuals. (Includes job descriptions, health regulations, restaurant procedures, marketing ideas, training programs, appropriate forms, etc.) In addition, Crabby Joe’s professional operations staff offers consultation and advice on:

-daily operations – general management – food and beverage cost – local marketing plans – labor costs – troubleshooting.

Crabby Joe’s Franchisees have access to group purchasing power, coordinated menu printing, and regular menu revisions (usually 2 per year), plus a low cost business and liability insurance program. Franchisees are also involved in ongoing advertising and promotional programs at nominal cost.

7. WHAT IS THE NATIONAL MARKETING FEE?

The National Marketing Fee is 2% of sales as defined in the Franchise Agreement and is paid weekly to Obsidian Group Inc. These fees are maintained in a “Crabby Joe’s Marketing Account” and are used for system advertising and promotion of the Crabby Joe’s system as established by the Franchisor.

8. IS THE FRANCHISEE REQUIRED TO PURCHASE EQUIPMENT AND/OR SUPPLIES FROM OBSIDIAN GROUP INC?

Franchisees are obligated to purchase directly from a network of Obsidian Group Inc. approved suppliers. There are some promotional and advertising items only purchased direct from Obsidian Group Inc. Franchisees benefit from special pricing negotiated by Obsidian Group Inc.

9. HOW MUCH CAPITAL DO I NEED TO OPEN A CRABBY JOE’S RESTAURANT?

The total investment required will vary by location, but is estimated to be approximately $550,000 - $600,000 for a turn key operation. Approximately $350,000 is cash equity, with the balance being financed through other sources including banks, landlord construction allowances, etc. In addition to this you will be required to have $50,000 - $75,000 to cover opening soft costs (inventories, utility deposits, and operating capital).

10. HOW MUCH CAN I MAKE ON A CRABBY JOE’S?

Franchising regulations prevent Obsidian Group Inc. from making income disclosures. We encourage prospective Franchisees to obtain independent professional legal and accounting opinions on Crabby Joe’s franchise program.

11. MAY A FRANCHISEE SELL THEIR RESTAURANT AND FRANCHISE RIGHTS?

Yes, subject to Obsidian Group Inc. first qualifying the new Franchisee.

12. CAN A FRANCHISEE CHOOSE THEIR OWN SUPPLIERS?

No - Obsidian Group Inc. has negotiated very favorable pricing for Franchisees through a network of approved suppliers. Franchisees are required to make all purchases only from these Obsidian Group Inc. approved suppliers.

13. ARE FRANCHISEES RESPONSIBLE FOR BUILDING THEIR OWN RESTAURANT?

No - Obsidian Group Inc. designs and builds the restaurant, turning over a turnkey operation to the Franchisee. With our “In-House” construction team, contractors and equipment supplier contacts, restaurants are planned, equipped, and built cost effectively in the shortest possible time.

14. I ALREADY OWN A RESTAURANT; CAN I CONVERT IT TO A CRABBY JOE’S?

A visit to the location would be made to inspect and determine the conversion practicality of converting it.

15. MAY I OWN MORE THAN ONE CRABBY JOE’S?

Yes, provided that you can show Obsidian Group Inc. that you have the necessary finances, staff and a plan to properly manage multiple units. (This is happening more and more in our Franchisee family.)

16. I AM INTERESTED IN A CRABBY JOE’S FRANCHISE, WHAT DO I DO NEXT?

Contact our Franchise Director at, 1-877-272-2952 to obtain a Confidential Personal Information Form. Once you fill out this form, fax it back to our Franchise Director at 905-814-8272. We evaluate all applicants to verify that their financial status fits within our parameters. Once this is complete, a meeting with our Franchise Director is arranged to review our system, financing options, site preferences, training program requirements, and answer any questions you may have. Prior to signing a Franchise Agreement, a Disclosure Document will be provided. We suggest you retain a franchise lawyer for review of the documents and that you also contact some of our franchisees.