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Questions and Answers
- 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.
- IF I AM THE FRANCHISEE, DO I HAVE TO MANAGE THE RESTAURANT?
No, but Franchisees that are fully committed in terms of time and attention to their operations show the greatest success. If not, each restaurant must at all times have a full-time, experienced general manager.
We strongly recommend that you or a trusted, motivated person be your store leader. You should be prepared to manage and control your restaurant on a daily basis and always know what is going on with all aspects of the business.
- 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.
- WHAT SUPPORT DO I RECEIVE WHEN OPENING A RESTAURANT?
Every Franchisee must successfully complete 8 weeks of pre-opening training. In addition, we’ll have support personnel in your restaurant for 3 to 4 weeks after your opening. Thereafter you will benefit from the ongoing visits from our District Managers.
Obsidian Group Inc.’s goal is to ensure the Franchisees succeed. Add to this the confidential system manuals - developed and provided by Obsidian Group Inc. - and the multi-person training team that is provided with every Crabby Joe’s Tap & Grill opening... and it’s not hard to see how and why Obsidian Group Inc. achieves such a high standard of uniformity, quality and Franchisee success at all of its locations.
The support doesn’t end when the training team leaves. Obsidian Group Inc.’s professional operations staff makes ongoing visits to your restaurant to hear any concerns you may have. They’ll also conduct “Restaurant Audits”, which expose areas of concern within your operation. Our “Area Directors” work with our Franchisees to develop action plans to correct and eliminate any problems uncovered. Our Franchisees' problems are truly our problems.
Crabby Joe’s basis of business is a simple three point philosophy based on the premises that every job is important:
- We want to please our customers.
- We want to make a profit according to a pre-determined plan.
- We want to be thought of as a good place to own or work.
In addition to this philosophy, the critical points of Crabby Joe’s success formula are:
- PRODUCT – We always use the finest ingredients to prepare our food and drinks. Obsidian Group Inc. sources and approves all suppliers, which have to be federally inspected.
- SERVICE – Not just a matter of delivering food and drinks but rather an “attitude” toward our customers, built out of our “12 Steps of Service”.
- ENVIRONMENT – This includes the entire restaurant as the customer sees it. Attractive, clean, high energy and fun.
- VALUE – Our customers get fair exchange on all our products. At reasonable prices, we serve large portions and don’t skimp on the extras.
We ask that you perform your job well enough to be proud of the job, and proud of yourself. We will provide you with our assistance.
For more information on Support, please see Franchise Support
- WHAT IS THE FRANCHISE FEE?
The franchise fee is $35,000 paid upon signing of the Franchise Agreement for the ongoing use of the Crabby Joe’s name, trademarks and advertising material.
- 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 life towards your being awarded our franchise.
- AS A FRANCHISEE, WHAT DO I RECEIVE FOR PAYING ROYALTIES?
Franchisees receive detailed, confidential system manuals. (They include 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
- labour 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.
- 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.
- 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 that will only be purchased direct from Obsidian Group Inc. Franchisees benefit from special pricing negotiated by Obsidian Group Inc.
- 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 $700,000 - $850,000 (covers opening soft costs for inventories, smallwares, utility deposits and operating capital, etc) for a turnkey operation. Approximately $350,000 in cash equity, with the balance being financed through other sources including banks, landlord construction allowances, etc.
- HOW MUCH CAN I MAKE ON A CRABBY JOE’S?
Franchise regulations prevent Obsidian Group Inc. from making income disclosures. The amount you could make is based on many variables such as sales mix, competition in the area, operational costs, time of year and more.
We encourage prospective Franchisees to obtain independent professional legal and accounting opinions on Crabby Joe’s franchise program.
- MAY A FRANCHISEE SELL THEIR RESTAURANT AND FRANCHISE RIGHTS?
Yes, subject to Obsidian Group Inc. first qualifying the new Franchisee.
- 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.
- 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.
- 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 practicality of converting it.
- 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.)
- I AM INTERESTED IN A CRABBY JOE’S FRANCHISE, WHAT DO I DO NEXT?
Contact our Franchise Director at 1-877-272-2952 or complete our online application form. 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.
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