Is Crawlspace Medic able to guarantee that franchisees will not incur additional expenses exceeding the estimated operating capital?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
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- This is an estimate of the amount of additional operating capital that you may need to operate your Franchised Business during the first three (3) months after commencing operations.
We cannot guarantee that you will not incur additional expenses in starting the business that may exceed this estimate.
This estimate also includes such items as initial payroll and payroll taxes, Royalties (as described in this disclosure document), Brand Fund Contributions (if any), additional advertising, marketing and/or promotional activities, repairs and maintenance, bank charges, miscellaneous supplies and equipment, initial staff recruiting expenses, state tax and license fees, deposits and prepaid expenses (if applicable) and other miscellaneous items as offset by the revenue you take into the Franchised Business.
These items are by no means all inclusive of the extent of the expense categorization.
The expenses you incur during the initial start-up period will depend on factors such as the time of the year that you open, both local economic and market conditions, as well as whether your Franchised Business is located in a new or mature market and your business experience.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 16–20)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, Crawlspace Medic cannot guarantee that franchisees will not incur additional expenses exceeding the estimated operating capital. The FDD states that the additional funds are an estimate of the amount of additional operating capital that a franchisee may need to operate the franchised business during the first three months after commencing operations. These additional funds range from $40,000 to $60,000.
The estimate includes items such as initial payroll and payroll taxes, Royalties, Brand Fund Contributions (if any), additional advertising, marketing and/or promotional activities, repairs and maintenance, bank charges, miscellaneous supplies and equipment, initial staff recruiting expenses, state tax and license fees, deposits and prepaid expenses (if applicable) and other miscellaneous items as offset by the revenue you take into the Franchised Business. The FDD notes that these items are not all inclusive of the extent of the expense categorization.
The expenses a Crawlspace Medic franchisee incurs during the initial start-up period will depend on factors such as the time of the year that they open, both local economic and market conditions, as well as whether their Franchised Business is located in a new or mature market and their business experience. Crawlspace Medic recommends that franchisees use these categories and estimates as a guide to develop their own business plan and budget and investigate specific costs in their area.