To whom are Crawlspace Medic Brand Fund Contributions 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. These payments are collected weekly via ACH at the same time as the royalty payments.
The Brand Development Fund is used at Crawlspace Medic's sole discretion. The funds are not considered income for the franchisor, but are used to develop the brand.
Prospective franchisees should note that while the Brand Fund contributions are not paid directly to Crawlspace Medic, the franchisor retains full control over how the funds are spent. Franchisees do not have direct input on how the Brand Fund is used. This is a fairly standard practice in franchising, where franchisors typically manage marketing funds to ensure consistent brand messaging and strategy.