About LA Crawfish Franchise
LA Crawfish is a seafood restaurant franchise that has been franchising since 2013, specializing in Cajun style boiled crawfish, shrimp, crab, and other Southern seafood dishes.
The brand brings the flavors of Louisiana to communities across the country with a casual, fun dining atmosphere centered around communal seafood boils and bold seasonings.
The franchise fee is $35,000.
LA Crawfish Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 | One-time payment upon signing |
| Royalty Fee | 6% of Net Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of Net Sales to the System Ad Fund. You must directly spend an additional 2% of Net Sales on your local advertising. | National brand fund |
| Total Investment Range | $346,000 – $503,500 | Includes build-out, inventory, working capital |
The investment range of $346K–$504K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Net Sales) and marketing fee (1% of Net Sales to the System Ad Fund. You must directly spend an additional 2% of Net Sales on your local advertising.) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $35,000 | $35,000 |
| Business Licenses & Permits | $2,000 | $3,000 |
| Leasehold Improvements | $140,000 | $200,000 |
| Fixtures, Furnishings & Equipment | $70,000 | $100,000 |
| Computer and Point of Sale System | $8,000 | $12,000 |
| Architect/Engineering Fees | $14,000 | $20,000 |
| Rent, Security Deposits and Utility Deposits | $5,000 | $15,000 |
| Other Professional Fees | $2,500 | $4,500 |
| Insurance Deposit | $500 | $1,000 |
| Initial Inventory of Food, Beverage and Paper Supplies | $25,000 | $35,000 |
| Training Expenses | $4,000 | $8,000 |
| Grand Opening Advertising | $5,000 | $10,000 |
| Additional Funds (for initial period of operations) | $35,000 | $60,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | An amount equal to 50% of our then-current initial franchise fee. |
| Renewal Fee | An amount equal to 50% of our then-current initial franchise fee. |
| Technology Fee | $400 per month |
| Audit Fee | All costs and expenses associated with the audit, reasonable accounting and legal costs. |
| Grand Opening Advertising Obligation | Between $5,000 and $10,000 |
| Local Telephone and On-line Directories | $50 - $250 per month |
| Additional on-site training and assistance | $500.00 per diem charge, plus out-of-pocket costs, per trainer |
| Remedial Training | $500.00 per diem charge, plus out-of-pocket costs, per trainer |
| Product/Supplier Testing | $300 - $1,000 per product |
| Charges for “mystery customer” quality control evaluation | Will vary under circumstances, but not to exceed $500 per year |
| Late Fee and Interest on Overdue Payments | A late fee equal to 5% of your overdue amount, and interest equal to 1.5% per month (but not more than any maximum rate set by law) |
| Dues and Assessments Imposed by a Franchisee Advisory Council | As determined by a franchisee advisory council (if established). Currently – none. |
| Gift Card Program | $.50- $1 per card cost, $300 - $400 software license per location, $50 - $100 per hour custom card design fee, $0.25 - $0.75 per transaction fee, and $25 - $50 per monthly maintenance fees. |
| Store Refurbishment | $35,000 - $175,000 every 5 years. |
| Prohibited Product or Service Fee | $5000 per day of use of unauthorized products or services |
| Non-Compliance Fee | As specified in the Manuals and may vary under circumstances of Non-Compliance but no less than $5000 per incidence of non-compliance. |
| Management Fee | 2.5% - 4.0% of gross revenues. |
| Insurance Procurement | $100 - $250 administrative fee per insurance product. |
| Relocation Expenses | Our actual expenses. |
| Securities Offering | Our actual expenses. |
| Costs and Attorneys’ Fees | Will vary under circumstances. |
| Indemnification | Will vary under circumstances. |
| Tax Reimbursement | Out-of-pocket cost reimbursement. |
| Liquidated Damages | The greater of the number of months remaining on the Franchise Agreement or twenty-four (24) times the average monthly Royalty Fee. |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | approximately three (3) weeks |
| Classroom Training | 42 hours |
| On-the-Job Training | 96 hours |
| Training Location | our affiliate-owned stores in Houston, Texas |
| Additional Training | Refresher courses, seminars, and other training programs may be required, not exceeding four days per trainee annually at headquarters/affiliate stores and three days per trainee annually for conventions. Voluntary programs are also offered. Remedial training may be required if the Franchised Store is not operated consistently with the Franchise Agreement. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | The size and scope of the Territory will be contained in the Franchise Agreement and will be determined based upon various factors such as (a) whether the Approved Location is an urban area or a suburban area; (b) the number of residents living in the area; (c) the number of people working in the area; and (d) the number of competitive stores in the area; among other factors. |
| Description | Your Franchise Agreement may specify a Territory, but if your Store is in a non-traditional site or major metropolitan location, no Territory may be granted. Within a granted Territory, the franchisor will not establish or license other LA Crawfish Stores, with specified exceptions. The franchisor retains rights to operate or license others outside the Territory, operate non-store-front businesses, operate businesses under other proprietary marks, and sell products through alternative distribution channels anywhere. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | One renewal term of 10 years. |
| Renewal Fee | an amount equal to one half (1/2) of the then-current initial franchise fee. |
| Renewal Conditions | Franchisee must give written notice 6-12 months prior to term end, satisfy all monetary and other outstanding obligations, not be in default, substantially comply with agreement terms, execute a mutual general release, execute the then-current franchise agreement (which may have different terms/fees), comply with current qualification/training, renovate premises to current standards, provide evidence of right to possession of premises, and satisfy financial responsibility standards. |
| Transfer Fee | An amount equal to 50% of our then-current initial franchise fee. |
| Transfer Conditions | Franchisor approval is required. Conditions include: all monetary and other obligations satisfied, no default, execution of a general release by transferor, transferee meets franchisor's application qualifications (including financial resources, business skill, personal character), transferee executes current franchise agreement (which may have higher fees), transferee upgrades store to current standards, transferor remains liable for pre-transfer obligations, and transferee completes training. |
| Termination for Cause | Default under Franchise Agreement, bankruptcy, abandonment, conviction of felony, threat to public health/safety, loss of right to possession of premises, unauthorized transfer, knowingly maintaining false books/records, disclosing confidential information, failure to comply with non-compete covenants, misuse of proprietary marks, repeated defaults, cessation of operations for two consecutive days, or breach of any material provision not susceptible to cure. |
| Non-Compete Period | two (2) years |
| Non-Compete Details | During the term of the agreement, franchisee cannot divert business, injure goodwill, solicit employees, or have more than a 1% interest in a competitive business (retail food with >10% sales from crawfish, crabs, seafood, Vietnamese Pho). After termination/expiration, for two years, franchisee cannot operate a similar business within the Territory or within 25 miles of any LA Crawfish Store, or solicit employees. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | If you are an individual, you must directly supervise the franchised business on its premises. If you are a corporation, a person who owns at least 1/3 share of the corporate equity must perform the direct, on-site supervision. You (or, if you are an entity, your Designated Principal) must be involved in the general oversight and management of the operations of the Franchised Store. Additionally, you must designate either yourself, your Designated Principal (if you are an entity) or a General Manager (subject to our reasonable approval) to assume the full-time responsibility for daily supervision and operation of the Franchised Store. |
| Required Suppliers | You must purchase all additional Products, other Store Items, and approved services solely from manufacturers, distributors, and suppliers who demonstrate to our continuing reasonable satisfaction the ability to meet our standards and specifications, who possess adequate quality controls and capacity to supply your needs promptly and reliably, and who have been approved by us in the Manuals or otherwise in writing. Currently, you must purchase proprietary seasoning products, sauces and ingredients from us, our affiliate or any approved supplier. |
| Supply Restrictions | You may not purchase, offer or sell any Products, or use at your Franchised Store any Products or Store Items that we have not previously approved as meeting our standards and specifications. If you desire to purchase unapproved products, you must submit a written request to approve the proposed product or supplier, together with evidence of conformity with our specifications. We have the right to inspect the supplier’s facilities and require samples for evaluation and testing, for which you must pay a charge not to exceed the reasonable cost of the evaluation and testing. |
| Franchisor Revenue from Suppliers | In 2022, rebate incentives from approved vendors Sysco and Pepsi generated $23,419 in revenue for the franchisor, which was 1.6% of total revenue. The franchisor's affiliate, LAC Distributing, LLC, generated 100% of its $492,259 revenue from the sale of goods or services to franchisees. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your notes, leases or other obligations. |
LA Crawfish Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
LA Crawfish 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.
LA Crawfish System Growth
LA Crawfish currently operates 19 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 3 | 1 | 19 |
| 2021 | 3 | 0 | 22 |
| 2022 | 0 | 3 | 19 |
Transfers: 0 | Closures: 3
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by David P. Chaney, CPA, P.C. for year ending December 31.
LA Crawfish Franchise — FAQ
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