California fines The Kickin' Crab for selling unregistered franchises

The California Department of Financial Protection and Innovation (DFPI) has fined a California-based seafood chain $120,000 for selling franchises without the proper registration or documentation.

The Kickin’ Crab, which operates 40 locations, according to the company’s website, apparently sold at least 16 franchises in California between 2012 and 2025 without providing the franchise disclosure document.

That document includes information about the offering, including the franchise agreement, its litigation history, and information about fees, royalties, and other costs. All franchises are supposed to publish one and provide it to prospective franchisees.

The chain also did not register its offering with DFPI, which is also a requirement before a company can sell franchises in the state. California regulators discovered the violations during a compliance examination in April. The Kickin' Crab apparently sold "trademark license agreements," which the agency contends are in fact franchises.

“Companies must be transparent and truthful or face the consequences,” DFPI Commissioner KC Mohseni said in a statement. “No one would buy a car or a house without the proper legal disclosures, and small business owners deserve the same protection when considering a franchise investment.”

The Kickin’ Crab did not respond to a request for comment.

As part of California’s action, the restaurant chain must stop violating the rules and complete remedial training on the state’s franchise law. If it fails to comply, the agency can revoke the company’s registration.

This is the second major fine by DFPI in a month. Previously, the agency fined the Texas-based Dickey’s Barbecue Pit for concealing the number of locations that had stopped operating.

It also continues a period in which the agency has been publicizing its franchise enforcement actions.

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