When is the Multi-Territory Fee for a Crawl Space Ninja franchise due?
Crawl_Space_Ninja Franchise · 2024 FDDAnswer from 2024 FDD Document
You will also be required to pay us a multi-territory fee immediately upon execution of your Franchise Agreements and Multi-Territory Addendum (the "Multi-Territory Fee"), which will vary based on the number of Territories in which we grant you the right to operate under that agreement. Please see Item 5 for additional information on how the Multi-Territory Fee is calculated. The Multi-Territory Fee covers the Initial Franchise Fee due under the Franchise Agreement for each Territory in which the Franchised Business will operate.
Source: Item 5 — INITIAL FEES (FDD pages 9–10)
What This Means (2024 FDD)
According to the 2024 Crawl Space Ninja Franchise Disclosure Document, the Multi-Territory Fee is due immediately upon the execution of both the Franchise Agreements and the Multi-Territory Addendum. This fee compensates Crawl Space Ninja for the Initial Franchise Fee that would otherwise be due for each territory covered by the agreement. The amount of the Multi-Territory Fee varies depending on the number of territories the franchisee is approved to operate in.
This means that a prospective Crawl Space Ninja franchisee seeking to secure rights to multiple territories must be prepared to pay this fee upfront. This is a non-refundable fee, so it is important for the franchisee to carefully consider their expansion plans and financial capabilities before entering into a Multi-Territory Addendum.
Franchisees should note that while the Multi-Territory Fee covers the initial franchise fee for each territory, they will still be responsible for other costs associated with establishing and operating each additional Crawl Space Ninja franchise, such as securing office space and vehicles for each territory.