To whom are the Brand Fund Contributions for a Crawlspace Medic franchise paid?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee 1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Continuing Royalty Fee2 | Six Percent (6%) of Gross Revenues per week. | Royalties are collected weekly via ACH. | Gross Revenues are defined in Note 2 below. Royalties are currently paid directly to us. |
| Brand Development Fund Contribution3 | Up to 2% of Gross Revenues. Currently Brand Fund Contribution is 1% of Gross Revenues per week | Weekly via ACH at the same time as the Royalty. | Brand Fund Contributions are paid directly to the Brand Fund. |
| Technology Fee4 | 0.5% of Gross Revenue Per Unit | Weekly via ACH at the same time as the Royalty. | Payable to us |
Source: Item 6 — OTHER FEES (FDD pages 10–16)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, Brand Fund Contributions are paid directly to the Brand Fund, not to the franchisor. These contributions can be up to 2% of Gross Revenues. Currently, the Brand Fund Contribution is 1% of Gross Revenues per week, collected weekly via ACH at the same time as the royalty payments.
The Brand Fund is used at Crawlspace Medic's sole discretion. This means that while franchisees contribute to the fund, Crawlspace Medic decides how the money is spent. This is a common practice in franchising, allowing the franchisor to manage marketing and brand development strategies across the entire system.
As a prospective Crawlspace Medic franchisee, it is important to understand that while you contribute to the Brand Fund, you do not have direct control over how those funds are spent. You should inquire about the Brand Fund's specific uses and strategies to ensure they align with your business goals and market conditions.