California regulators have fined The Kickin' Crab $120,000 for selling franchises without registering its offering and without providing prospective buyers a franchise disclosure document.

The state's Department of Financial Protection and Innovation says the seafood chain sold at least 16 franchises in California between 2012 and 2025 without ever handing over the disclosure document, the core legal paperwork in any franchise sale. That document spells out the franchise agreement, the franchisor's litigation history, and details on fees, royalties, and other costs. Every franchise system selling in the state must publish one and deliver it to prospects.

The chain also never registered its offering with the DFPI, a prerequisite for selling franchises anywhere in California. Regulators uncovered both violations during a compliance examination in April.

The structure of the sales drew scrutiny as well. The Kickin' Crab sold what it called "trademark license agreements," which the agency contends are franchises in substance.

"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 operates 40 locations, according to the company's website. The company did not respond to a request for comment.

The consent order carries ongoing obligations. The chain must stop violating the rules and complete remedial training on California's franchise law. If it fails to comply, the DFPI can revoke its registration — effectively ending its ability to sell franchises in the state.

The penalty marks the DFPI's second major fine in a month. The agency previously fined Texas-based Dickey's Barbecue Pit for concealing the number of locations that had stopped operating.

Both actions fit a broader pattern: the DFPI has been publicizing its franchise enforcement work, signaling to franchisors selling into California that registration, disclosure, and honest unit-count reporting are active areas of examination rather than paperwork formalities.