Is the Crawlspace Medic Brand Fund Contribution calculated weekly or monthly?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
13.3. Brand Development Fund.
- 13.3.1.
Franchisor has established a national fund on behalf of the System for national advertising, marketing, and brand development (the "Brand Fund").
Franchisee is currently required to contribute an amount equal to one percent (1%) of the Gross Revenue generated weekly by Franchisee's Franchised Business to the Brand Development Fund ("Brand Fund Contribution").
Franchisor reserves the right, in Franchisor's sole discretion and at any time and from time to time, to increase the amount of the Brand Fund Contribution to two percent (2%) of the Gross Revenue generated monthly.
Payments will be made in the same manner and time as the Royalty Fees.
If Franchisee fails to timely report Gross Revenue, then, in addition to a late fee and interest pursuant to Sections 6.2 and 6.3 hereof, Franchisor shall collect one hundred twenty percent (120%) of the last Brand Fund Contribution payable.
Franchisor shall reconcile amounts when Gross Revenues are reported.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, the Brand Fund contribution is initially calculated weekly. Specifically, franchisees must contribute 1% of their weekly gross revenue to the Brand Fund. However, Crawlspace Medic retains the right to modify this contribution schedule.
Crawlspace Medic can, at its discretion, increase the Brand Fund contribution to 2% of the franchisee's gross revenue, calculated on a monthly basis. This change is not guaranteed but is a possibility franchisees should be aware of. The payments are to be made in the same manner and time as the royalty fees.
If a Crawlspace Medic franchisee fails to report gross revenue on time, the franchisee will have to pay a late fee and interest. In addition to the late fee and interest, Crawlspace Medic will collect 120% of the last Brand Fund Contribution payable. The franchisor will reconcile amounts when gross revenues are reported.